Key audit matters for financial reports 2023: Climate-related matters
When preparing and auditing IFRS financial statements in 2023, listed companies and their auditors are to focus more on climate-related obligations and targets, among other things, as announced by ESMA (European Securities and Markets Authority) in October. Decarbonization strategies and emission reduction targets are to be disclosed. The accounting principles of emissions trading systems and certificates for renewable energies as well as methods and contractual conditions of PPAs (power purchase agreements) used must also be disclosed. The consideration of climate risks in the assessment of non-financial assets is also considered material.
