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Effects of climate change on financial statements of entities listed in the Netherlands

Author

Listed:
  • Leo van der Tas

    (Universiteit van TIlburg, Tilburg, Netherlands)

  • Yukti Aggarwal

    (EY, Utrecht, Netherlands)

  • Danijela Maksimovic

    (EY, Amsterdam, Netherlands)

Abstract

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.

Suggested Citation

  • Leo van der Tas & Yukti Aggarwal & Danijela Maksimovic, 2022. "Effects of climate change on financial statements of entities listed in the Netherlands," Maandblad Voor Accountancy en Bedrijfseconomie Articles, Maandblad Voor Accountancy en Bedrijfseconomie, vol. 96(11-12), pages 391-404, December.
    • Handle: RePEc:arh:jmabec:v:96:y:2022:i:11-12:p:391-404
    DOI: 10.5117/mab.96.94820
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    Cited by:

    1. repec:fst:rfsisf:v:8:y:2023:i:15:p:215-222 is not listed on IDEAS
    2. Laurențiu Paul Barangă & Elena-Ioana Ifrim, 2023. "The Impact of Corporate Sustainability Reporting Directive on Financial Reporting," Journal of Financial Studies, Institute of Financial Studies, vol. 15(8), pages 215-222, November.

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