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- Title
CORPORATE DISCLOSURE OF INFORMATION ON CLIMATE-RELATED MATTERS: RESEARCH INTO THE NEW PROPOSALS OF SEC, EFRAG, AND ISSB (PART I).
- Authors
Oreshkova, Hristina
- Abstract
The contemporary problems that occur due to climate change are unique. The change climate process observed for decades causes an existential threat to both humankind and other living beings. Another interrelated risk arises from environmental degradation and biodiversity deterioration. The multiple complicated, compound and simultaneous impacts of both factors and processes on people, biodiversity, and economic entities and sectors pose challenges to humankind. Current circumstances and effects of climate change require adequate governmental, institutional, managerial, and administrative strategies, policies, and activities both at national, regional, and international levels, for achieving sustainable (ecological), fair, and resilient growth alongside combating climate change. Moreover, natural phenomena and processes, unknown to the local indigenous inhabitants of certain geographical regions, are vast evidence of climate change. All these processes, more and more give rise to highlighting and justifying the need for meaningful climate-related disclosures through the opportunities of corporate reporting. The societal necessity of trustworthy, transparent, and reliable disclosures on climate-related matters and inherent potential risks and opportunities focused on climate change mitigation and adaptation is the problem of crucial importance to the present article. The relevance of climate-related disclosures as a significant part of present-day corporate reporting proves to be of great importance to achieving disclosure efficiency. The author aims to highlight, discuss and justify the necessity of a responsible approach to implementing and conducting an adequate disclosure policy and providing meaningful and consistent disclosures concerning matters, risks, and opportunities related to climate and its visible change. This is considered a substantial part of contemporary corporate reporting and substantiates why probable benefits for a sustainable future can be expected, not only for the company. Concerning the specified issues and objectives, the paper discusses and essentially presents the three most significant proposals for climate-related disclosures recently made – the U.S. Securities and Exchange Commission’s proposal, the proposal made by the European Financial Reporting Advisory Group, and the International Sustainability Standards Board’s proposal. The author has set out to present the just essential core values of each of the proposals, thus comparing them with each other as well as with the foundation they follow – the recommendations of the TFCD framework. The terminology is in the field of both financial and non-financial reporting and the respective regulatory frameworks, which are not fully aligned, although the long-lasting efforts of many global and international authoritative organizations and institutions. Heuristic methods like analysis and synthesis, methods of induction and deduction, descriptive approach, and techniques and methods such as observation, analogy, comparison, and others were applied in the research process that is important to achieving the author’s objective.
- Subjects
FINANCIAL management; ENVIRONMENTAL degradation; CLIMATE change; SUSTAINABILITY; BIODIVERSITY
- Publication
Knowledge: International Journal, 2022, Vol 54, Issue 1, p27
- ISSN
2545-4439
- Publication type
Article