{"id":300,"date":"2025-02-14T11:31:23","date_gmt":"2025-02-14T11:31:23","guid":{"rendered":"https:\/\/cleantechnica.com\/?p=226544"},"modified":"2025-02-14T11:31:23","modified_gmt":"2025-02-14T11:31:23","slug":"canadian-climate-governance-guide-helps-audit-disclosures","status":"publish","type":"post","link":"https:\/\/demo4.dedicatedhost247.com\/green\/green-news\/canadian-climate-governance-guide-helps-audit-disclosures\/","title":{"rendered":"Canadian Climate Governance Guide Helps Audit Disclosures"},"content":{"rendered":"
Green Economy<\/a> \"\"<\/small><\/p>\n
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Published on<\/strong> December 14th, 2020 | by Carolyn Fortuna<\/em><\/small><\/p>\n

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December 14th, 2020<\/span> by Carolyn Fortuna<\/a><\/span><\/strong>\u00a0<\/p>\n\n

Given the growing direct and indirect financial impacts of climate change, boards of directors have a duty to adopt a climate action strategy to tackle what Canadian courts have called<\/a> \u201can existential threat to human civilization and the global ecosystem.\u201d At no other time have audit committees been so essential to guide climate governance. Canadian securities regulators have been clear: the climate crisis is now a mainstream business issue, and companies must disclose their material climate risks and how they are addressing them.<\/p>\n

External auditors are increasingly integrating climate issues into external audits, and it is only a matter of time before they will raise climate issues as a key audit matter for some entities. Audit committees must become prepared for fluctuations based on climate, including stranded assets \u2014 quickly.<\/p>\n

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Image retrieved from Canadian Climate Law Initiative<\/a><\/p>\n<\/div>\n

One of the most underreported parts of effective climate governance is the important role that audit committees play. To help out, the Canada Climate Law Initiative (CCLI) has released \u201cAudit Committees and Effective Climate Governance, A Guide for Boards of Directors,\u201d a practical guide<\/a> for corporate boards to respond to growing investor requests for effective management and disclosure of climate-related financial risks and opportunities.<\/p>\n

\u201cThe Guide for Audit Committees on Climate Governance provides a comprehensive blueprint to assist corporate boards and their audit committees in effectively reporting on their oversight of management of climate-related risks.\u201d said Catherine McCall, executive director at the Canadian Coalition for Good Governance (CCGG) and CCLI\u2019s Climate Governance Expert.<\/p>\n

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In November, 2020, the CEOs of Canada\u2019s largest pension plans, representing $1.6 trillion in assets under management, announced their commitment to sustainable growth by integrating climate-related and other environmental, social, and governance (ESG) factors into their investment decisions.<\/p>\n

They reminded investee companies that they have an obligation to disclose their material business risks and opportunities through financially relevant, comparable, and decision-useful information. CPA Canada has set out 6 characteristics that may help audit committees review the appropriateness of management-selected key performance indicators (KPI) and how they have been disclosed.<\/p>\n