CPA Canada supports concept of consistent climate-related financial reporting

Chartered Professional Accountants of Canada (CPA Canada) applauds the effort of the Task Force on Climate-related Financial Disclosures (TCFD) to provide a foundation for more relevant and globally consistent corporate reporting on climate change issues.

TORONTO, July 13, 2017 – Chartered Professional Accountants of Canada (CPA Canada) applauds the effort of the Task Force on Climate-related Financial Disclosures (TCFD) to provide a foundation for more relevant and globally consistent corporate reporting on climate change issues.

The TCFD was established in 2015 by the Financial Stability Board, an international body that monitors and makes recommendations on the global financial system. The TCFD’s recently released final report recommended a set of voluntary and consistent climate-related financial disclosures to be used by companies to assist investors, lenders, and insurance underwriters in understanding factors that could materially affect performance.

“Establishing a commonly shared understanding of the business language used to describe climate change issues, enables a clearer discussion of the implications for businesses, investors and global financial stability,” says Joy Thomas, president and CEO, CPA Canada.

CPA Canada supports the concept of a globally consistent approach to climate-related financial reporting, especially when its own study of regulatory filings by Canadian public companies found that the nature and extent of climate-related disclosures varies significantly.

The full study can be found at: cpacanada.ca/climatedisclosuresstudy

CPA Canada encourages the Task Force to continue its education and outreach activities and to engage in meaningful dialogue with capital market participants to promote closer alignment of existing regulatory reporting regimes.

“We have provided input into the climate change disclosure review actively being carried out by Canadian securities regulators and look forward to the findings,” says Rosemary McGuire, a director within research, guidance and support at CPA Canada. “Going forward, our organization will engage in further discussions with key stakeholders as we seek to understand the opportunities, challenges and potential benefits of adopting the TCFD recommendations.”

In addition, to help the boards of directors of organizations in their oversight of climate-related strategy, risk, financial performance and reporting, CPA Canada has published a Climate Change Briefing: Questions for Directors to Ask. The second edition briefing is co-authored by Alan Willis and Sarah Keyes, both chartered professional accountants.

“The briefing is aligned with CPA Canada’s championing of the Canadian ideal of good business which values sustainable growth and social development,” adds Thomas. “Climate change has real economic and social implications for business. Directors are key players in providing the necessary leadership, tone and oversight of climate-related issues, so it is important they understand the business impacts and governance issues arising from climate change.”

To download a free copy of the briefing, visit: cpacanada.ca/climatechangebriefing