The Global Necessity for Reliable Disclosures Regarding Climate-Related Issues: A Unique Challenge to Corporate Reporting and Governance in Favor of Sustainable Development
The Global Necessity for Reliable Disclosures Regarding Climate-Related Issues: A Unique Challenge to Corporate Reporting and Governance in Favor of Sustainable Development

Author(s): Hristina Oreshkova
Subject(s): Economy, Accounting - Business Administration
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: environmental degradation; sustainable development; climate; climate change; disclosures on climate-related issues
Summary/Abstract: There exists the widespread thesis (hypothesis) that greenhouse gas emissions create and pose considerable risks to the economy. Its supporters argue that the greenhouse gas emissions affect and will continue to have a strongly negative impact on many economic sectors and that view is maintained worldwide. Therefore, it is reasonable to expect that stakeholders like communities of present and potential investors, creditors, and other interested parties would increasingly need reliable (authentic, faithful) information regarding companies and companies’ business activities mostly exposed to risk, arising from climate change as well as companies generating risk regarding climate as a result of the nature of their activities. It is extremely necessary to know to what extent companies are organized to incur unfavorable impacts and effects of aggressive natural phenomena, due to climate change primarily and the extent to which they are prepared to take appropriate preventative actions.The problem central to the present article is the necessity of truthful and transparent corporate disclosures regarding matters, risks, and opportunities, related to climate. The relevance and transparency of climate-related disclosures as a significant part of present-day corporate reporting are of great importance for the achievement of disclosure efficiency. The author aims to highlight, discuss and justify the necessity of providing meaningful and consistent disclosure of information on climate-related matters, risks, and opportunities considered by the author a significant comprising part of the corporate reporting process and governance, of highlighting existing concerns, and substantiating why probable benefits of such disclosures can be expected as regards sustainable future.Logically, the terminology of the research is in the field of financial and non-financial reporting and their numerous regulatory frameworks (not fully aligned yet). Heuristic methods of knowledge as analysis and synthesis, induction and deduction, descriptive method, and methods such as observation, analogy, comparison, and others are applied in the process of research, which is of crucial importance to achieving the author’s aim and objectives.

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