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illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:
🗞️ Driving the news: The International Accounting Standards Board (IASB) has proposed new guidance to help companies better disclose the impact of climate change on their financial performance
• This initiative responds to investor concerns about insufficient information on climate-related uncertainties in financial statements
🔭 The context: IASB standards are widely used in over 140 jurisdictions, including the EU, Canada, Japan, and Britain
• However, sustainability disclosures, such as those related to net-zero commitments, are often not included in audited financial statements, leading to a lack of clarity for investors
🌍 Why it matters for the planet: Accurate and comprehensive climate-related financial disclosures are crucial for understanding the economic impacts of climate risks and guiding responsible investment decisions
⏭️ What's next: The IASB has launched a consultation on these proposed guidelines, inviting feedback from companies and stakeholders
• This may lead to more rigorous and standardized reporting of climate impacts across various industries
💬 One quote: "They expressed concerns that information about climate-related uncertainties in financial statements was sometimes insufficient or appeared to be inconsistent with information provided outside the financial statements," the IASB stated
📈 One stat: The IASB's norms are applied by listed companies in more than 140 jurisdictions globally
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