The Impact of Climate Changes and Climate Risk on the Accounting and Accounting Professions

Abstract

If we are to identify the most defining global issue of our time, we would undoubtedly conclude that it is climate change and the associated risks for modern society and life across all sectors. Over the past two decades, the disclosure of information regarding corporate activities relevant to climate change has increased substantially. Decision-makers must choose between two options: confronting the issue and addressing it with appropriate business models and policies, or persisting with outdated business practices. With the latest Global actions there will not be chouse. The climate-related disclosures will become mandatory across much of the global economy. Accounting, as the language of business, must engage with these requirements. Integrating climate and other environmental and social values into traditional reporting is a crucial challenge for the Accounting today. Identifying and providing models for analyzing the interdependence of these risks, represents another significant challenge for Accounting recent years. Accountants can play a vital role in this risk analysis, supplying data to inform new policies and strategies, and implementing plans that facilitate informed decision-making, In this article, we explore how modern Accounting and Accounting profession, on a global scale, have adapted and responded to these new challenges, as sciences disciplines and as empirical profession as well.