Sharp Rise In Companies Climate-Related Risk Disclosure: G20 Report - BQ Prime
Sharp Rise In companies' Climate-Related Risk Disclosure: G20 Report
Sharp Rise In Companies' Climate-Related Risk Disclosure: G20 Report
Climate-related metrics disclosure led the way with over 70% of companies disclosing the metrics they use.
The report, based on Task Force on Climate-related Financial Disclosures recommendations, reveals a 26% increase in companies disclosing their climate-related risks and opportunities, while oversight by company boards in this regard rose by 25%.
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% of companies disclosing the metrics they use. Reporting on greenhouse gas emissions and climate-related targets also showed considerable progress (both at 66%), with a 24% 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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Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”