dac beachcroft – Climate risks, financial statements and auditors – where are we heading?

In July 2022 DAC Beachcroft explored the legal risks facing auditors in light of an increasing number of companies subject to mandatory climate related disclosures (available here). They outlined the need for auditors to consider how their existing obligations should be applied to the new disclosures, in particular ensuring they are mindful of their responsibilities under ISA 720 and the need to consider whether a company's climate risk disclosures are consistent with its financial statements.