EY has released a comprehensive Climate-related Disclosure Checklist to help entities align their reporting with the latest International Sustainability Standards Board (ISSB) guidelines.
In a significant step towards enhancing transparency and accountability in sustainability reporting, EY has introduced a new checklist that provides a detailed summary of required climate-related disclosures as outlined in the IFRS Sustainability Disclosure Standards, specifically IFRS S1 and IFRS S2.
The EY Climate-related Disclosure Checklist is designed to assist entities in preparing thorough and compliant climate-related financial disclosures. The checklist is essential for companies aiming to meet the growing demands of stakeholders for clear and consistent information on climate-related risks and opportunities.
Key Features of the Checklist
Governance Disclosures:
Strategy Disclosures:
Risk Management Disclosures:
Metrics and Targets:
General Requirements:
Judgements, Uncertainties, and Errors:
The EY Climate-related Disclosure Checklist not only helps companies comply with ISSB Standards but also enhances the clarity and utility of their climate-related financial reports. By systematically verifying each disclosure, entities can ensure they provide material information that meets the qualitative characteristics of useful financial information.
Transition Reliefs: Entities can elect to disclose only climate-related risks and opportunities in their first year of applying IFRS S1, with a full set of sustainability disclosures required in the second year. This 'climate-first' relief offers a practical approach for entities transitioning to the new standards.
Materiality and Judgment: The checklist underscores the importance of assessing the materiality of information to avoid obscuring relevant details with immaterial data. Entities are encouraged to apply careful judgment in tailoring their disclosures based on individual circumstances.
EY’s new Climate-related Disclosure Checklist is a vital tool for companies striving to enhance their sustainability reporting. By following this checklist, entities can ensure their climate-related disclosures are comprehensive, transparent, and aligned with the latest international standards.
For more information and to access the checklist, please visit the EY website.
Stay tuned for more updates on sustainability and reporting from Five.
In a significant step towards enhancing transparency and accountability in sustainability reporting, EY has introduced a new checklist that provides a detailed summary of required climate-related disclosures as outlined in the IFRS Sustainability Disclosure Standards, specifically IFRS S1 and IFRS S2.
The EY Climate-related Disclosure Checklist is designed to assist entities in preparing thorough and compliant climate-related financial disclosures. The checklist is essential for companies aiming to meet the growing demands of stakeholders for clear and consistent information on climate-related risks and opportunities.
Key Features of the Checklist
Governance Disclosures:
- Detailed guidance on reporting the governance processes, controls, and procedures for monitoring and managing climate-related risks and opportunities.
- Specific questions to ensure comprehensive disclosures about the roles and responsibilities of governance bodies and management.
Strategy Disclosures:
- Instructions on describing climate-related risks and opportunities and their potential impacts on the entity's business model and value chain.
- Requirements for disclosing the financial implications of climate-related risks and opportunities on financial performance and position.
Risk Management Disclosures:
- Guidelines for reporting the processes used to identify, assess, and manage climate-related risks and opportunities.
- Emphasis on how these processes integrate with the entity’s overall risk management strategy.
Metrics and Targets:
- Clear requirements for disclosing metrics used to assess climate-related risks and opportunities, including greenhouse gas emissions.
- Detailed instructions on reporting progress towards climate-related targets.
General Requirements:
- Ensures alignment with ISSB standards for identifying applicable disclosure requirements and the proper timing and location of these disclosures.
- Emphasizes the importance of providing comparative information and statements of compliance with IFRS Sustainability Disclosure Standards.
Judgements, Uncertainties, and Errors:
- Provides guidelines for disclosing significant judgments made in preparing climate-related financial information.
- Instructions on addressing measurement uncertainties and correcting prior period errors.
The EY Climate-related Disclosure Checklist not only helps companies comply with ISSB Standards but also enhances the clarity and utility of their climate-related financial reports. By systematically verifying each disclosure, entities can ensure they provide material information that meets the qualitative characteristics of useful financial information.
Transition Reliefs: Entities can elect to disclose only climate-related risks and opportunities in their first year of applying IFRS S1, with a full set of sustainability disclosures required in the second year. This 'climate-first' relief offers a practical approach for entities transitioning to the new standards.
Materiality and Judgment: The checklist underscores the importance of assessing the materiality of information to avoid obscuring relevant details with immaterial data. Entities are encouraged to apply careful judgment in tailoring their disclosures based on individual circumstances.
EY’s new Climate-related Disclosure Checklist is a vital tool for companies striving to enhance their sustainability reporting. By following this checklist, entities can ensure their climate-related disclosures are comprehensive, transparent, and aligned with the latest international standards.
For more information and to access the checklist, please visit the EY website.
Stay tuned for more updates on sustainability and reporting from Five.