Research Article
Assessment of Climate-related Scenario for Climate-related Risk & Opportunities Disclosure in Indonesia
@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
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.