The fourth EY Global Climate Risk Barometer reveals that companies are still not translating disclosures into concrete actions.
- Although more companies are reporting on climate risk, they are not providing meaningful commentary about the challenges they face.
- The majority of companies surveyed (51%) are still either not conducting scenario analysis, or not disclosing the results.
- Just 29% of companies surveyed are referencing climate-related matters in their financial statements, both qualitatively and quantitatively.
Companies are investing more and more time in producing climate-related disclosures, which are increasingly based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Yet their disclosures are still not translating into practical strategies to accelerate decarbonization. Why is that? This is the issue explored by the fourth EY Global Climate Risk Barometer, a comprehensive analysis of disclosures made by more than 1,500 companies across 47 countries.
These insights form part of the EY CFO Imperative Series, which provides critical answers and insights to help finance leaders reframe the future of their organization.
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