ASTM E2718-25 PDF

Full title and description

ASTM E2718-25 — Standard Guide for Financial Disclosures Attributed to Climate Change. This guide provides options and recommended practices for preparing climate change–related disclosures that accompany audited and unaudited financial statements, with the aim of promoting consistent, decision‑useful disclosure of financial impacts attributed to climate change.

Abstract

ASTM E2718-25 offers a framework for determining when climate-related financial information should be disclosed, what content is appropriate, and how to present financial impacts and assumptions. It emphasizes practical disclosure choices consistent with customary commercial practice and seeks to improve comparability and transparency of climate-related financial reporting.

General information

• Status: Active (replaced earlier edition, see history below).
• Publication date: April 1, 2025.
• Publisher: ASTM International (ASTM).
• ICS / categories: 03.060 — Finance; banking; monetary systems; insurance (financial reporting/disclosure).
• Edition / version: E2718-25 (2025 edition).
• Number of pages: 15 (standard PDF).

Scope

Provides a guide for preparers, auditors, and users of financial statements to identify conditions that warrant disclosure of climate-related financial effects and to specify the content and format of those disclosures. The guide addresses both audited and unaudited financial statements and covers disclosure of identified financial impacts, the underlying assumptions and methods (including scenario analysis where relevant), and presentation considerations to support decision‑useful information.

Key topics and requirements

• Criteria for when climate change–attributed financial impacts should be disclosed (materiality considerations and triggers for disclosure).
• Types of financial impacts to disclose (asset impairments, provisions/contingencies, revenue/cost impacts, capital expenditures, valuation assumptions).
• Guidance on disclosure of assumptions, methods and sensitivity or scenario analysis used to estimate future climate impacts and resilience of financial plans.
• Recommended structure and level of detail for accompanying narrative and quantitative tables to support financial statements.
• Considerations for governance, risk management and internal controls related to climate‑linked financial estimates and disclosures.
• Alignment and cross‑references to other reporting frameworks and metrics (for comparability with investor‑oriented standards and market expectations).

Typical use and users

Used by preparers and reviewers of financial statements (CFOs, financial reporting teams, corporate accountants), external auditors and assurance providers, investors and credit analysts evaluating climate financial risk, sustainability and ESG teams preparing integrated disclosures, valuation professionals, and consultants advising on climate‑related financial reporting and disclosures. It is applied when drafting or auditing financial statements that require clear explanation of climate‑attributed financial impacts or when aligning corporate reporting with investor expectations.

Related standards

Replaces and updates prior ASTM editions (for example, E2718-21 was withdrawn and superseded by the 2025 edition). It is commonly used alongside other ASTM guidance on environmental and financial liabilities (examples cited in professional training include ASTM E2137, E2173, E3123 and E3228). Organizations also frequently consider interoperability with investor‑oriented frameworks such as the TCFD recommendations and IFRS/ISSB sustainability standards (e.g., IFRS S2) when applying this guide.

Keywords

climate change, financial disclosure, financial statements, climate-related financial impacts, materiality, scenario analysis, greenhouse gas, reporting entity, governance, assumptions, accounting estimates.

FAQ

Q: What is this standard?

A: ASTM E2718-25 is a standard guide that provides recommended approaches and disclosure options for reporting financial impacts attributed to climate change in or alongside audited and unaudited financial statements.

Q: What does it cover?

A: It covers when and how to disclose climate‑related financial impacts, the content of disclosures (quantitative and narrative), assumptions and methods (including scenario analysis where relevant), and presentation practices to support transparency and comparability.

Q: Who typically uses it?

A: Preparers of financial statements (finance and accounting teams), auditors and assurance providers, investors and financial analysts, sustainability teams, valuation specialists, and consultants involved in climate‑risk assessment and financial reporting.

Q: Is it current or superseded?

A: The 2025 edition (E2718-25) is the current active edition, published April 1, 2025; it supersedes the prior 2021 edition which was withdrawn on or about the same date.

Q: Is it part of a series?

A: It is a standalone ASTM guide but is frequently referenced together with related ASTM documents addressing environmental liabilities and financial reporting practice (for example E2137, E2173, E3123, E3228) and with international investor‑focused disclosure frameworks such as TCFD and IFRS S2 for interoperability.

Q: What are the key keywords?

A: Climate change, financial disclosure, financial statements, greenhouse gas, materiality, scenario analysis, assumptions, governance, reporting entity.