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TORONTO, April 23, 2008 – Canada’s Chartered Accountants are providing assistance to help corporate executives better understand business issues associated with climate change including financial disclosure. The Canadian Institute of Chartered Accountants (CICA) has issued a document pointing out that, at the company level, climate change is a business and shareholder value issue involving strategy, risk management and financial performance. There are two aspects of climate change for companies to address. First is mitigation or what is being done to reduce the company’s own greenhouse gas emissions that contribute to climate change. Second is adaptation or what action is being taken to respond to the anticipated effects of climate change on company operations, such as water shortages or extreme weather conditions. ‘Investors want to be able to assess the impact of climate change on the future earnings of a company and the competitive advantage of one business over another,” said Dave Pollard, Vice-President of Knowledge Development for the CICA. ”Executives should examine the adequacy of climate change disclosures in their financial reporting, and consider its impact as a strategic and risk management imperative.” Governments around the globe are taking action to address the causes of climate change. This includes instituting carbon taxes, regulating emissions reduction targets and introducing emissions trading systems. “With governments imposing regulations and investors seeking more information relating to climate change practices and impacts, it only makes sense for companies to reflect that in their corporate reporting,” said Pollard. The new CICA publication features a short discussion on climate change issues relevant to business and five key questions for executives to consider regarding climate change and related disclosures. The publication titled, Executive Briefing – Climate Change and Related Disclosures, can be found on the CICA web site (www.cica.ca). The Canadian Institute of Chartered Accountants (CICA), together with the provincial, territorial and Bermuda Institutes/Ordre of Chartered Accountants, represents a membership of approximately 72,000 CAs and 10,000 students in Canada and Bermuda. The CICA conducts research into current business issues and supports the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government. It issues guidance on control and governance, publishes professional literature, develops continuing education programs and represents the CA profession nationally and internationally. CICA is a founding member of the International Federation of Accountants (IFAC) and the Global Accounting Alliance (GAA). -30- For more information contact:
Tobin Lambie CICA, Manager, Media
(416) 204-3228
tobin.lambie@cica.ca
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