Disclosing the impact of climate change: A process for assessing materiality
The implications of climate change have become widely recognized and could significantly impact a company's business model. This publication sets out a process and considerations to assist companies in assessing materiality of climate-related matters.
Companies often find it challenging to determine what climate-related information should be included in their reporting. Materiality determinations are highly subjective and require significant professional judgment and consultation with a variety of professionals.
This publication sets out a four-step process and related considerations to assist companies in assessing materiality of climate-related matters:
- Identify climate-related factors and impacts that have the potential to be material.
- Assess whether the climate-related matters are, in fact, material to the company.
- Organize the climate-related information in a way that communicates the information clearly and concisely in the most relevant filings, particularly those intended to address risks.
- Review the draft climate-related disclosures to determine whether all material information has been identified and materiality has been considered from a broad perspective, as well as at a detailed level.