Businesses and investors are now becoming more and more aware of the potential risks and threats of climate change but not all recognise the inherent financial risk as capital assets employed in high-risk sectors will become obsolescent and ‘stranded’. As these assets cease to deliver adequate financial return to the business, they will need to be impaired, writing-off balance sheet value and ultimately reducing profitability.
In this article we explore what stranded assets look like, which sectors are particularly vulnerable and how impairing stranded assets is likely to become a more common discussion for auditors and valuers.
Find out more on>> Climate Change and Stranded Assets Impairment Valuation