Proceedings of the 2nd International Conference on Contemporary Risk Studies, ICONIC-RS 2023, 21-22 September 2023, Bali, Indonesia

Research Article

Assessment of Climate-related Scenario for Climate-related Risk & Opportunities Disclosure in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.21-9-2023.2345688,
        author={Yohanes Handoko Aryanto},
        title={Assessment of Climate-related Scenario for Climate-related Risk \& Opportunities Disclosure in Indonesia },
        proceedings={Proceedings of the 2nd International Conference on Contemporary Risk Studies, ICONIC-RS 2023, 21-22 September 2023, Bali, Indonesia},
        publisher={EAI},
        proceedings_a={ICONIC-RS},
        year={2024},
        month={6},
        keywords={climate-related risk ifrs s2 strategic risk scenario analysis sustainability report},
        doi={10.4108/eai.21-9-2023.2345688}
    }
    
  • Yohanes Handoko Aryanto
    Year: 2024
    Assessment of Climate-related Scenario for Climate-related Risk & Opportunities Disclosure in Indonesia
    ICONIC-RS
    EAI
    DOI: 10.4108/eai.21-9-2023.2345688
Yohanes Handoko Aryanto1,*
  • 1: Pertamina Energy Institute
*Contact email: yohanes.handoko86@gmail.com

Abstract

Under the recently issued IFRS-S2 Climate Related Disclosure, climate-related risk & opportunities assessment based on normative scenarios that align with the Paris Agreement does not fit for the developing country situation as Indonesia and poses a negative impact for reporting entities in the region. This paper analyzes the issues related to climate-related risk and opportunities assessment based on scenario analysis according to IFRS-S2 requirement. The analysis uses literature study, case study in oil & gas reporting entities, and scenario simulation specific for Indonesia. Based on the analysis, this paper proposes several recommendations to strengthen developing countries reporting entities in the implementation of IFRS-S2 such as using Net Zero Emission scenarios specific for developing countries, utilization of descriptive climate scenarios, also addressing energy trilemma and just transition in climate-related scenario analysis.