KPMG has launched Clear on Climate Reporting, a digital resource center designed to help companies communicate the financial impact of climate-related risks and opportunities to stakeholders. This initiative responds to increased scrutiny of financial data as the effects of climate change increase and the transition to a low-carbon economy. The Center aims to help businesses navigate these complex issues with essential resources and guidance. At its core, Clear on Climate Reporting offers a set of resources tailored for companies seeking to understand and effectively communicate climate impacts.
Key features include FAQs to help identify potential financial reporting impacts, podcasts and videos on specific issues by sector, and plans for future additions such as an emissions section. These resources are critical as companies struggle to integrate environmental, social and governance (ESG) factors into their financial reporting framework. The center addresses a number of critical issues related to today’s business world. This includes how companies can identify net-to-net liabilities, navigate the complexities of emissions trading systems and incorporate ESG metrics into executive compensation structures. In addition, it provides an overview of the financial impact of purchasing carbon allowances and accounting for government support linked to climate initiatives.
These measures aim to increase transparency and empower companies to make informed decisions about their climate strategies and financial information. In the future, KPMG plans to expand Clear on Climate Reporting with additional resources and innovations to keep up with changing regulatory requirements and industry best practices. The Center serves as a comprehensive toolkit for companies seeking to adapt their financial reporting to the challenges and opportunities of climate change, reinforcing KPMG’s commitment to promoting sustainable practices in corporate governance..