Effects of climate change on financial statements of entities listed in the Netherlands
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 improv...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Pensoft
2022-12-01
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| Series: | MAB |
| Online Access: | https://mab-online.nl/article/94820/download/pdf/ |
| _version_ | 1797978495020695552 |
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| author | Leo van der Tas Yukti Aggarwal Danijela Maksimovic |
| author_facet | Leo van der Tas Yukti Aggarwal Danijela Maksimovic |
| author_sort | Leo van der Tas |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-04-11T05:24:57Z |
| format | Article |
| id | doaj.art-7158d60a6a224632a18129293a834080 |
| institution | Directory Open Access Journal |
| issn | 2543-1684 |
| language | English |
| last_indexed | 2024-04-11T05:24:57Z |
| publishDate | 2022-12-01 |
| publisher | Pensoft |
| record_format | Article |
| series | MAB |
| spelling | doaj.art-7158d60a6a224632a18129293a8340802022-12-23T09:54:06ZengPensoftMAB2543-16842022-12-019611/1239140410.5117/mab.96.9482094820Effects of climate change on financial statements of entities listed in the NetherlandsLeo van der Tas0Yukti Aggarwal1Danijela Maksimovic2Universiteit van TIlburgEYEYA 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.https://mab-online.nl/article/94820/download/pdf/ |
| spellingShingle | Leo van der Tas Yukti Aggarwal Danijela Maksimovic Effects of climate change on financial statements of entities listed in the Netherlands MAB |
| title | Effects of climate change on financial statements of entities listed in the Netherlands |
| title_full | Effects of climate change on financial statements of entities listed in the Netherlands |
| title_fullStr | Effects of climate change on financial statements of entities listed in the Netherlands |
| title_full_unstemmed | Effects of climate change on financial statements of entities listed in the Netherlands |
| title_short | Effects of climate change on financial statements of entities listed in the Netherlands |
| title_sort | effects of climate change on financial statements of entities listed in the netherlands |
| url | https://mab-online.nl/article/94820/download/pdf/ |
| work_keys_str_mv | AT leovandertas effectsofclimatechangeonfinancialstatementsofentitieslistedinthenetherlands AT yuktiaggarwal effectsofclimatechangeonfinancialstatementsofentitieslistedinthenetherlands AT danijelamaksimovic effectsofclimatechangeonfinancialstatementsofentitieslistedinthenetherlands |