Project on Climate-related Risks in the Financial Statements

Keywords: Mazars, Thailand, IASB, ISSB, Climate-related Risks 

16 May 2023

This follows feedback received by the IASB in its Third Agenda Consultation, suggesting that climate-related risks may not be adequately captured in financial statements and that investors need better qualitative and quantitative disclosures about these risks. 

The IASB will explore the nature and the causes of these concerns through research and outreach. The project, which is part of the maintenance workplan, is expected to remain limited in scope and should therefore not lead to fundamental changes to the IFRS framework. The IASB will consider the work of the International Sustainability Standards Board (ISSB) to ensure that any proposal is consistent with the IFRS issued by the ISSB in terms of sustainability disclosures and that any information required by the two Boards (IASB and ISSB) is complementary. 

The IASB’s press release is available here. We take this opportunity to remind readers of our study on financial reporting of European entities on climate issues (available here in French and English), which explores current practices in this area.