Canada’s Chartered Accountants are providing assistance to help corporate executives better understand business issues associated with climate change including financial disclosure.

The Canadian Institute of Chartered Accountants (CICA) has issued a document pointing out that, at the company level, climate change is a business and shareholder value issue involving strategy, risk management and financial performance.

There are two aspects of climate change for companies to address, according to the CICA. First is mitigation or what is being done to reduce the company’s own greenhouse gas emissions that contribute to climate change. Second is adaptation or what action is being taken to respond to the anticipated effects of climate change on company operations, such as water shortages or extreme weather conditions.

“Investors want to be able to assess the impact of climate change on the future earnings of a company and the competitive advantage of one business over another,” says Dave Pollard, vp of knowledge development for the CICA. “Executives should examine the adequacy of climate change disclosures in their financial reporting, and consider its impact as a strategic and risk management imperative.”

“With governments imposing regulations and investors seeking more information relating to climate change practices and impacts, it only makes sense for companies to reflect that in their corporate reporting,” says Pollard.

The new CICA publication features a short discussion on climate change issues relevant to business and five key questions for executives to consider regarding climate change and related disclosures.

The publication titled, Executive Briefing – Climate Change and Related Disclosures, can be found on the CICA web site.