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Shell ruling forces company and accountants to work faster on climate goals

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Shell ruling forces company and accountants to work faster on climate goals

In brief: 

  • Like Shell, many other companies also need to do more about their climate policy.
  • Companies will be more open about their climate plans, accountants expect.
  • Accountants will therefore include additional people with knowledge of sustainability in their audit teams.

As a result of the recent Shell judgment, companies must provide much more information about how they will limit their climate risks and whether they should write down assets. As a result, accountants have to check much more closely whether that information is correct. They will therefore accelerate the addition of ‘climate expertise’ to their control teams. This is apparent from a tour of major accountancy firms in the Netherlands, a week and a half after the judge forced Shell to become the first company in the world to reduce its emissions.

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