HomeLatest FeedsTechnology NewsBarely a quarter of the companies quantify the effects of climate change...

Barely a quarter of the companies quantify the effects of climate change in their financial indicators



In addition to reporting, real and comprehensive measures would be needed so that companies can achieve the set climate goals.

Despite the fact that companies define comprehensive climate goals due to pressure from investors, nearly half of them (47 percent) do not disclose how they intend to meet them, and nearly three quarters (74 percent) do not quantify the impact of climate change on their operations in their financial statements.

EY’s Global Climate Risk Barometer evaluates corporate sustainability reports for the fifth year running. The research examines 1,536 companies from 51 countries in 13 affected sectors. The reports are assessed against standards set by the Task Force on Climate Change Financial Disclosures (TCFD).

Despite the fact that the detail and quality of corporate reports showing the risks of the climate situation have improved somewhat since 2022, the pace of practical action remains slow.

Sustainability reports are still not detailed enough, and the regulations regarding them are not effective enough. Furthermore, companies do not treat the effects of climate change according to their weight when evaluating financial results.

In addition to reporting, real and comprehensive measures would be needed so that companies can achieve the set climate goals.

Those companies that understand how the impact of climate change is connected to their business strategy are more easily able to meet the new disclosure requirements, while those actors that continue to only try to comply formally will face serious difficulties with the tightening of the requirements – said Lukács Ákos, head of EY’s area dealing with Climate Protection and Sustainability Services.

A well-thought-out sustainability report offers a serious opportunity to establish a lasting competitive advantage.

In terms of the quality of corporate reports on the financial risks of the climate situation, European countries came out on top: the United Kingdom (66 percent), Germany (62 percent), France (59 percent), Spain (59 percent) and the United States (52 percent). were the best performing states. In comparison, the reports of companies in India (36 percent), China (30 percent) and several Far Eastern countries lag significantly behind.

They pointed out: countries with strict disclosure regulations and committed investors or decision-makers are better than countries with no binding climate policy requirements.

Mr.Mario
Mr.Mario
I am a tech enthusiast, cinema lover, and news follower. and i loved to be stay updated with the latest tech trends and developments. With a passion for cyber security, I continuously seeks new knowledge and enjoys learning new things.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read