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

Leo van der Tas (), Yukti Aggarwal () and Danijela Maksimovic ()
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Leo van der Tas: Universiteit van TIlburg, Tilburg, Netherlands
Yukti Aggarwal: EY, Utrecht, Netherlands
Danijela Maksimovic: EY, Amsterdam, Netherlands

Maandblad Voor Accountancy en Bedrijfseconomie Articles, 2022, vol. 96, issue 11-12, 391-404

Abstract: 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.

Keywords: Climate; sustainability; financial; statements; auditor; report; annual; report; IFRS (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:arh:jmabec:v:96:y:2022:i:11-12:p:391-404

DOI: 10.5117/mab.96.94820

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