Global Rulemaker Wants Financial Reports to Reflect Climate Risk

  • IASB launches consultation on how best to present data
  • Investors voice frustration over lack of uniform reporting
Key information on issues such as water scarcity and access to reliable power supplies can be hard for investors to find and decipher.Photographer: Linh Pham/Bloomberg
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The International Accounting Standards Board is urging companies to disclose climate-related risks in their balance sheets and income statements, representing a key shift from existing norms.

IASB, which develops accounting standards followed in more than 160 countries, said on Wednesday that it’s launching a market consultation with a view to having financial statements reflect the impact and uncertainties related to climate change.