Expanded Climate Risk Disclosure Requirements by the Security and Exchange Commission

2021 ◽  
Vol 38 (2) ◽  
pp. 1-12
Author(s):  
David South ◽  
Kaitlyn Zolton ◽  
Andy Trump
Keyword(s):  
Climate Risk ◽  
Risk Disclosure ◽  
Disclosure Requirements

Information and Analytical Support for Sustainable Development of Companies Based on IFRS

Auditor ◽  
2021 ◽  
Vol 7 (11) ◽  
pp. 43-49
Author(s):  
S. Puchkova ◽  
Yu. Sotneva
Keyword(s):  
Sustainable Development ◽  
Climate Risk ◽  
Risk Disclosure ◽  
The Sustainable Development ◽  
Development Initiatives ◽  
Development Risks

The article focuses on the sustainable development initiatives and sustainable development standards, which are the bases of information-analytic analysis, helping investors to understand the IFRS’ role in climate risk disclosure and other sustainable development risks.

scholarly journals Make Markets Work for Resilience

2019 ◽  
pp. 56-76
Author(s):  
Hill and
Keyword(s):  
Real Estate ◽  
Large Scale ◽  
Insurance Companies ◽  
Climate Risk ◽  
Insurance Markets ◽  
Risk Disclosure ◽  
Climate Risks ◽  
Climate Resilience ◽  
Systemic Level ◽  
Bond Property

This chapter looks at how more transparent disclosure of climate risks can make markets work for resilience. In a world in which climate risk is reflected in the prices of assets traded in the market, everyone will be pressured to manage the risk and protect the value of their holdings. This chapter looks at four markets where we might expect climate risk disclosure to cause prices to change most readily: equities (company stocks), debt (bonds issued by companies and governments), property (real estate), and insurance. It argues that disclosure and better risk information can propel climate resilience at a systemic level, but it can also prove highly disruptive. Fear of disruption and its consequences has led different groups to throw sand into the gears to delay a day of reckoning, but that day is coming. If communities are unprepared, investors, banks, and insurance companies could panic and pull back indiscriminately from parts of the stock, bond, property, and insurance markets. The insights learned from these markets can illustrate how each could drive resilience on a large scale.

Informativeness Assessment of Risk and Risk-Management Disclosure in Corporate Reporting: An Empirical Analysis of Italian Large Listed Firms

2019 ◽  
pp. 9-41 ◽  
Author(s):  
Francesco De Luca ◽  
Ho-Tan-Phat Phan
Keyword(s):  
Risk Management ◽  
Specific Information ◽  
Risk Disclosure ◽  
Specific Level ◽  
Listed Firms ◽  
Corporate Reporting ◽  
Related Information ◽  
Industry Type ◽  
Disclosure Requirements ◽  
Two Phases

Purpose Risk-related information is prevalently used in the decision-making process by various counterparties. Therefore, this study investigates how compa-nies conduct their risk-disclosure practice after the new Italian Legislative Decree No. 254 of December 30, 2016. In particular, we draw attention to three aspects: (1) the interaction relationship among risk or risk management (RRM), industry, type of risk, and level of specific disclosure; (2) the variation of specific level of disclosing risk-related information across the industries and types of risk; and (3) the different behavior between risk and risk-management disclosure in the after-math of the regulation's issuance. Design/methodology/approach The study is based on a sample of large un-dertakings and groups that are subject to the Legislative Decree. Two phases of content analysis were executed to analyze the risk and risk-management disclosure. The research questions were investigated with the row effects loglinear model. Findings Our result shows that there are interaction relationships among RRM, type of risk, industry, and level of specific disclosure. Companies provide risk-related information at different levels of specificity depending on whether the information is risk description or risk management, the firms are operating in manu-facturing or nonmanufacturing, and the type of risk that the firms disclosed in their reports. Practical implications The paper provides evidence of inconsistent company behavior in disclosing company-specific information in favor of internal and ex-ternal stakeholders, particularly by balancing company-specific disclosure be-tween risk descriptions and risk-management policies. Policymakers might also consider this current phenomenon to decide to what extent disclosure requirements should be detailed and, instead, what room should be left for management discre-tion with respect to users' needs. Originality/value This paper is an up-to-date assessment of Italian firms' compliance with Legislative Decree No. 254 of December 30, 2016.

RELATIONSHIP BETWEEN CLIMATE RISK DISCLOSURE AND ABNORMAL RETURN OF BRASILIAN COMPANIES

2017 ◽  
Vol 13 (2) ◽  
pp. 149-165 ◽  
Author(s):  
Sônia Gomes ◽  
Daniel Koui ◽  
Adriano Bruni ◽  
Nverson Oliveira
Keyword(s):  
Abnormal Return ◽  
Climate Risk ◽  
Risk Disclosure

scholarly journals From Bushfires to Misfires: Climate-related Financial Risk after McVeigh v. Retail Employees Superannuation Trust

2021 ◽  
pp. 1-27
Author(s):  
Esmeralda Colombo
Keyword(s):  
Climate Change ◽  
Financial Risk ◽  
Pension Fund ◽  
Pension Funds ◽  
Climate Risk ◽  
Due Diligence ◽  
Risk Disclosure ◽  
Fiduciary Duties ◽  
Black Swans ◽  
Related Risk

Abstract The year 2020 proved to be a clarion call for global society. There is no longer doubt that increasingly we are experiencing unpredictable events, known as ‘black swans’, ranging from pandemics to financial meltdowns. One of the ’climate black swans’ against which experts have cautioned is the financial crisis caused by climate change. In this context, the Australian case of McVeigh v. Retail Employees Superannuation Trust for the first time tested climate risk and the fiduciary duties of retail pension funds. Settled in November 2020, the case has already raised the bar for climate risk practice in pension funds. In particular, McVeigh suggests that courts, as well as out-of-court settlements, may articulate a duty, rather than grant permission, for pension funds to consider climate-related financial risk in their investment decisions. The article builds on McVeigh to ask two questions. Firstly, what is the role of climate change litigation in promoting climate regulation by pension funds? Secondly, what is the relative importance of pension funds for the risk management of climate-related financial risk via due diligence compared with risk assessment via disclosure? Fundamentally, the article explains climate-related financial risk as a cultural phenomenon and argues that a discussion on pension fund fiduciary duties must consider disclosure in addition to due diligence. It argues that McVeigh articulated the need for a normative approach to pension fund disclosure duties and an extension of the field of climate-related risk disclosure to embrace climate-related risk due diligence.

Asset-Level Physical Climate Risk Disclosure

2020 ◽  
pp. 67-80
Author(s):  
Natalie Ambrosio Preudhomme ◽  
Emilie Mazzacurati
Keyword(s):  
Climate Risk ◽  
Risk Disclosure
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