I have to admit to being at a loss as what Net Zero is about. I listen to Nico on his podcast but I am now finding myself more confused than ever.
Byron’s comment on this blog puts my concern better than I can
Under IFRS, specifically IAS 37 “Provisions, Contingent Liabilities and Contingent Assets,” a company’s net-zero commitment may only be recognised as a liability on its balance sheet if it creates a “constructive obligation,” meaning a public statement that generates a valid expectation that the company will fulfill its commitment to reduce emissions, and meets the criteria for recognising a provision (such as being probable and reliably estimable) based on the specific facts and circumstances; simply announcing a net-zero target without concrete actions does not automatically trigger a liability recognition.
Do any of us have valid expectations that companies or pension schemes will fulfil the commitments we hear/read about them making?
It’s good to see Mike Clark having a go on the Pension PlayPen webcast on Tuesday. So far I’ve found myself exasperated by actuaries (Byron accepted).
I know that some of you will be at the PMI conference so I’ll be posting the video in due course but it’s much better to be on the call. I’ve missed a lot recently and having listened to the debate and read the comments on my blogs, I’m sorry.
