Auditors like PwC, KPMG, Deloitte and EY are paid to check that company accounts are accurate. If most energy intensive businesses and fossil fuel producers consistently overvalue fossil fuel assets on their balance sheets and in their business plans (Half world’s fossil fuel assets could become worthless by 2036 in net zero transition, 4 November), those auditors clearly are not doing their jobs. ClientEarth found that 90% of financial accounts and audit reports for the 250 largest UK listed companies made no reference to the financial implications of climate change.
This failure increases the risks of the economic impacts of climate change for pension fund members, institutional investors and the wider economy, as well as huge impacts on vulnerable communities and global biodiversity.
To reduce this risk and to ensure fossil fuel assets are valued properly, the business secretary, Kwasi Kwarteng, must strengthen his audit reform proposals to require companies and auditors to integrate climate change assessments into their financial accounts.
Charlie Kronick
Senior programme adviser, Greenpeace UK
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