ASTM International’s environmental assessment, risk management and corrective action committee (E50) has revised its standard guide for financial disclosures attributed to climate change.
The standard guide (E2718) was revised to provide instructions consistent with good commercial and customary practice for climate change-related disclosures accompanying audited and unaudited financial statements.
“As we continue to experience the impacts of climate change, we have seen an increasing need for calculating and predicting the financial impacts of climate change adaptation,” said John Rosengard, president of Environmental Risk Communications, Inc. “These revisions fill gaps in the existing standard to address the confirmation of past costs and predictions of future costs, reimbursements, and even revenue from new products and services.”
According to Rosengard, ASTM International member and E2718 workgroup lead, the standard guide will allow creditors, vendors, employees, and ratepayers to understand if climate change adaptation will bring immaterial or significant changes to the cash flow, balance sheet, and income statement of an organization.
This effort directly relates to the United Nations Sustainable Development Goal #13 on climate action.
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