Climate impact disclosures on financial reporting: Responding to stakeholder demands

Abstract

In recent years, the demand for information on climate change and its financial effects has grown among the main stakeholders in financial information. The focus was on whether this risk could affect an entity's ability to generate cash flows in the short, medium and long term. It was considered necessary to understand how organizations are affected by climate risk. That is why the objective of this research work is to determine whether the risks related to climate aspects with a financial effect can be measured and revealed using tools typical of a properly designed accounting system. A critical bibliographic analysis was taken as a basis to carry out analysis, comparisons and deductions that provide scientific rigor to the research. In order to identify climate-related risks and opportunities, the possible impact on decision-making based on information for this purpose is analyzed. Measuring and revealing information about actions and impacts related to climate change is an objective that can only be achieved with the contribution to Accounting of an accounting system model based on climate variables with an effect on the perception and understanding of the accounting message.