How to assess the materiality of climate change
The implications of climate change can significantly impact a company’s business model. This publication sets out a process and considerations to help you better assess the materiality of climate-related matters.
Climate change has been identified as one of the six largest vulnerabilities to the national economy by the Bank of Canada, yet companies often find it challenging to determine what climate-related information should be included in their reporting. Materiality determinations are highly subjective and require significant professional judgment. This publication sets out a four-step process and related considerations to assist companies in assessing materiality of climate-related matters.
Key takeaways:
- how to identify climate-related factors and impacts that have the potential to be material
- how to assess whether the climate-related matters are material to the company
- how to organize the climate-related information in a way that communicates clearly and concisely the most relevant findings
- how to review the draft climate-related disclosures to determine whether all material information has been identified and considered from both a broad and detailed perspective