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Climate Change by the Numbers
Canada's CAs help businesses and investors assess the impact of climate change
TORONTO - Canada's Chartered Accountants are providing assistance to help corporate executives better understand business issues associated with climate change including financial disclosure.
The Canadian Institute of Chartered Accountants (CICA) has issued a
document pointing out that, at the company level, climate change is a business
and shareholder value issue involving strategy, risk management and financial
performance.
There are two aspects of climate change for companies to address. First
is mitigation or what is being done to reduce the company's own greenhouse gas
emissions that contribute to climate change. Second is adaptation or what
action is being taken to respond to the anticipated effects of climate change
on company operations, such as water shortages or extreme weather conditions.
"Investors want to be able to assess the impact of climate change on the
future earnings of a company and the competitive advantage of one business
over another," said Dave Pollard, Vice-President of Knowledge Development for
the CICA. "Executives should examine the adequacy of climate change
disclosures in their financial reporting, and consider its impact as a
strategic and risk management imperative."
Governments around the globe are taking action to address the causes of
climate change. This includes instituting carbon taxes, regulating emissions
reduction targets and introducing emissions trading systems.
"With governments imposing regulations and investors seeking more
information relating to climate change practices and impacts, it only makes
sense for companies to reflect that in their corporate reporting," said
Pollard.
The new CICA publication features a short discussion on climate change issues relevant to business and five key questions for executives to consider regarding climate change and related disclosures. The publication is titled, Executive Briefing - Climate Change and Related Disclosures
or try - http://www.cica.ca/index.cfm/ci_id/44431/la_id/1.htm
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