IFAC: 2024 Progress Report on Corporate Climate-related disclosures

IFAC: 2024 Progress Report on Corporate Climate-related disclosures

• 18 December 2024
• Sustainability Reporting
• South African Accounting Academy

Summary:

The IFRS Foundation has published a detailed progress report that sets out global progress towards both mandated and voluntary corporate climate-related disclosures. This report was presented to the Financial Stability Board (FSB).

Article:

Over 1000 companies have referenced the International Sustainability Standards Board (ISSB) in their reports and 30 jurisdictions are making progress towards introducing ISSB Standards in their legal or regulatory frameworks.

These are some of the key findings of a detailed progress report and the report also sets out alignment of disclosures with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The IFRS Foundation took on responsibility for recording climate-related disclosure progress when the TCFD disbanded in 2023.

82% of companies disclosed information in line with at least one of the 11 TCFD recommendations as companies around the world turn their attention to climate-related disclosures. However, with less than 3% of these companies reporting in line with all 11 TCFD recommended disclosures, few companies provide disclosures that cover the company’s climate-related governance, strategy, risk management or metrics and targets. If the omitted information is material, it indicates investors are not currently receiving the information needed to assess and price climate-related risks and opportunities.

The report shares information about the status of the 30 jurisdictions that are progressing towards introducing ISSB Standards in their regulatory frameworks, as well as insights into how companies are transitioning from disclosures prepared using the TCFD recommendations to disclosures prepared using ISSB Standards.

Click here to download the 164-page Report:

https://www.ifrs.org/content/dam/ifrs/supporting-implementation/issb-standards/progress-climate-related-disclosures-2024.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• It is important to stay informed on publications issued by the regulators and standard-setters, e.g. IFAC.
• As an auditor, independent reviewer, accountant or practitioner, you ned to be aware of the latest guidance issued by relevant regulators, such as the IFRS Foundation.
• This report sets out global progress towards both mandated and voluntary corporate climate-related disclosures.

Relevance to Your Clients:

• It is important to stay informed on publications issued by the regulators and standard-setters, e.g. IFAC.
• This report sets out global progress towards both mandated and voluntary corporate climate-related disclosures.

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