Climate—Related Financial Disclosure (Climate Disclosure)

This chapter delves into the realm of corporate stand-alone climate disclosure. While integrating climate events within financial reports is essential, the expansive effects of climate events and carbon emissions on businesses necessitate a distinct, climate-centric report, which can be more concisely termed as a “climate disclosure.” With the recent release of accounting standards by bodies like IFRS and ISSB, there is clear shift from voluntary to mandatory climate disclosures. This chapter illuminates the quintessential format and content pillars of a climate disclosure. Such a disclosure will fully unpack the reporting entity’s GHG emissions, climate risks and opportunities and their implications, together with the entity’s carbon reduction strategy and governance, targets, and results. Such a disclosure signifies a firm’s climate accountability and stewardship and heralds its dedication to a carbon–neutral business paradigm. Through unambiguous climate-related revelations, users can track a firm’s progress on GHG abatement journey and assess how the management of the firm ratchet up their contributions in stabilisation of climate change.