Thorsten Sellhorn, Professor of Accounting and Auditing at Ludwig Maximilian University of Munich, discusses how climate-related risks influence IFRS financial reporting, highlighting disclosures under IAS 1, 36, 37, and IFRS 7. He explains IFRS 18’s upcoming structural changes to the income statement, key challenges in aligning sustainability and financial reporting, and the need for organizations to prepare systems and teams now for 2027 compliance and connected climate disclosures.