2021-12-02-德勤-The_Audit_Committee_Frontier_3页_449kb

The Audit Committee Frontier: Addressing Climate Change

Core Content

The Deloitte Global Boardroom report from November 2021 highlights the challenges audit committees face in addressing climate change. The report underscores that while the International Sustainability Standards Board (ISSB) represents a significant step forward in global sustainability reporting, audit committees are not yet adequately prepared to integrate climate considerations into their governance practices.

Main Findings

• Lack of Preparedness: 42% of audit committee members believe their organizations' climate responses are too slow and lack strength.
• Insufficient Information and Capabilities: Nearly 50% of audit committee members lack the necessary information, capabilities, and mandate to fulfill their climate-related responsibilities.
• Climate Literacy Gap: Just under half (46%) of audit committee members do not consider themselves "climate literate".
• Limited Engagement: Only 6% of audit committee members discuss climate change at every meeting, with 58% never or rarely addressing it.
• Internal Obstacles:
  • 65% of members identified the absence of a clear carbon reduction strategy, action plan, and accountability mechanisms as the top internal challenge.
  • 46% cited poor data and management information quality as a key challenge.
  • 40% rely on company management or external parties for climate impact assessments.
• Scope 3 Emissions Reporting Challenges:
  • 78% of members found measurement standards for Scope 3 emissions ambiguous.
  • 52% were unsure about the perceived value of this information.
• Comprehensive Climate Assessments:
  • 70% of respondents had not completed a comprehensive climate change assessment.
  • Only 18% reported that their financial statements fully reflected the outcomes of such assessments.

Key External Challenges

• Global Reporting Standards: 60% of audit committee members cited the lack of common global reporting standards as a major concern.
• Regulatory Pace: 46% mentioned difficulty in keeping up with the rapid changes in reporting regulations and practices.
• Collaboration Needs: 46% of respondents indicated that solutions require alliances beyond their own organization, which are difficult to establish.

Recommendations

The report provides practical advice for audit committees to better address climate change:

• Improve Climate Education: 87% of audit committee members emphasized the need for enhanced climate education.
• Ensure Quality Management Information: 79% called for better management information as part of regular reporting to the board.
• Internal Alignment: 78% highlighted the importance of internal alignment around the company's climate strategy.

Conclusion

The report stresses that the transition to a low-carbon economy is underway, and audit committees must adapt to ensure that climate considerations are embedded in corporate strategy and governance. It encourages boards to take decisive action, including conducting comprehensive climate assessments, improving data quality, and fostering collaboration across stakeholders.

About the Report

This report is part of the Deloitte Global Boardroom Program, which aims to address emerging governance issues. It includes survey findings from audit committee members and provides insights from Deloitte experts and industry practitioners. The program supports global companies by offering thought leadership and facilitating dialogue on critical boardroom topics.

About Deloitte

Deloitte is a global leader in audit, tax, legal, consulting, financial advisory, and risk advisory services. It operates in over 150 countries and serves nearly 90% of the Fortune Global 500. Deloitte's mission is to reinforce public trust in capital markets and help clients transform and thrive in a sustainable world.