Climate Change Risk-related Disclosures in Extractive Industries: A Comparative Study

Citation

Baboukardos D, Dionysiou D, Slack R, Tsalavoutas I & Tsoligkas F (2021) Climate Change Risk-related Disclosures in Extractive Industries: A Comparative Study. Association of Chartered Certified Accountants. London: ACCA and Adam Smith Business School. https://doi.org/10.36399/gla.pubs.258686

Abstract
First paragraph: There has been an ever-intensifying focus on the effect of climate change as well as the need for firms to identify the associated specific risks on companies’ long-term operations and sustainability. Following this, there is a need for the transformation of the global economy to net-zero carbon. As a result, many companies’ assets are expected to lose a substantial part of their value, as the estimated future net cash flows generated from the use of these assets may be significantly reduced. In addition, many firms will need to invest significant amounts of capital in new technologies not only to continue operating but also for protection from adverse weather conditions directly associated with climate change.