‘Sharp rise in companies’ climate-related risk disclosure’

The percentage of companies reporting on their climate-related targets increased by 24 percentage points between 2020 and 2022, according to the report…reports Asian Lite News

A new report from a G20 advisory body highlights significant growth in companies’ disclosure of climate-related risks and opportunities between 2020 and 2022.

The report, based on Task Force on Climate-related Financial Disclosures (TCFD) recommendations, reveals a 26 per cent increase in companies disclosing their climate-related risks and opportunities, while oversight by company boards in this regard rose by 25 per cent.

The Task Force assessed the current state and evolution of climate-related financial disclosures using artificial intelligence technology. It reviewed reports of more than 1,350 public companies over a three-year period fiscal years 2020, 2021 and 2022.

Climate-related metrics disclosure led the way with over 70 per cent of companies disclosing the metrics they use. Reporting on greenhouse gas emissions and climate-related targets also showed considerable progress (both at 66 per cent), with a 24 per cent increase in companies reporting on their climate-related targets.

The percentage of companies reporting on their climate-related targets increased by 24 percentage points between 2020 and 2022, according to the report.

The TCFD provides information to investors about what companies are doing to mitigate the risks of climate change, as well as being transparent about the way in which they are governed.

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