Effects of climate change on financial statements of entities listed in the Netherlands

A survey of 88 companies listed on the Amsterdam Stock Exchange shows that the number of financial statements referencing climate change has increased significantly (from 9% in 2020 to 39% in 2021) and that the reported financial impact of climate change was not material. However, significant improvements in the disclosures can be achieved by disclosing assumptions used, sensitivity analyses made and comparisons against benchmarks such as Paris-aligned climate change scenarios. We also found a very significant increase in the references to climate change in the auditor reports (from 2% in 2020... Mehr ...

Verfasser: Leo van der Tas
Yukti Aggarwal
Danijela Maksimovic
Dokumenttyp: Artikel
Erscheinungsdatum: 2022
Reihe/Periodikum: MAB, Vol 96, Iss 11/12, Pp 391-404 (2022)
Verlag/Hrsg.: Pensoft
Schlagwörter: Business / HF5001-6182 / Business mathematics. Commercial arithmetic. Including tables / etc / HF5691-5716
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-26801901
Datenquelle: BASE; Originalkatalog
Powered By: BASE
Link(s) : https://doi.org/10.5117/mab.96.94820

A survey of 88 companies listed on the Amsterdam Stock Exchange shows that the number of financial statements referencing climate change has increased significantly (from 9% in 2020 to 39% in 2021) and that the reported financial impact of climate change was not material. However, significant improvements in the disclosures can be achieved by disclosing assumptions used, sensitivity analyses made and comparisons against benchmarks such as Paris-aligned climate change scenarios. We also found a very significant increase in the references to climate change in the auditor reports (from 2% in 2020 to 70% in 2021). We conclude that the increase in references to climate change has most likely been caused by increased pressure from institutional investors, environmental lobby organisations and regulators upon preparers and auditors for more transparency.