Climate change is on the agenda
This year’s global findings showed year-over-year increases across both scores, with coverage of climate disclosures up 14% over 2021 to 84%, and quality scores experiencing a modest hike from 42% to 44%. But while companies appear to be embracing the TCFD recommendations, we’re learning that disclosures are not as comprehensive as investors and regulators would like them to be. And with global energy-related carbon dioxide emissions up 6% in 2021, it’s clear that companies aren’t taking the holistic view of climate change risks and opportunities required to translate them into practical strategies and advance the decarbonization agenda as originally anticipated.
Only 29% of the companies assessed reported the impact of climate change in their financial statements, and the data shared was mostly qualitative. With many around the world implementing mandatory guidelines around disclosure requirements and investors clamouring for transition plans, the pressure is on.