Climate Change Disclosure in 2018
Earlier in January, the World Economic Forum (WEF) released its new Global Risks Report. Out of the top five risks that will have the most impact and/or are likely to happen, three are identified as climate-related, for example extreme weather events and Climate Change mitigation and adaptation.
Despite this warning, the majority of companies are not reporting on their impact on climate-related issues. As Datamaran CEO Marjella Alma reveals: “Close to half of 4,737 companies did not disclose Climate Change in their financial reports in 2018”.
Using the Datamaran Benchmark Module, Datamaran analyzed Annual Financial Reports and SEC filings of 4,737 companies across six regions and created a map showing where the companies disclosing information on Climate Change are located.
Climate Change reporting: a geographical analysis mentions
The map shows the percentage of companies that mention Climate Change in their financial reports. The analysis includes Annual Financial Reports and/or SEC filings published in 2018.
The research shows that only 52 percent of the companies analyzed disclose Climate Change. In terms of percentages, the majority of mentions come from Africa, Europe, Oceania, and Asia. Americas and MENA lag behind their peers.
TCFD signatories are more proactive with reporting on climate change: signatories disclosure levels are double compared to their counterparts’ in 2017.
Global Insights Report: The rise of ESG regulations
The evolution of accountability shows us it is only a matter of time before prominent voluntary initiatives will become mandatory regulations, as such being ahead of the curve will help businesses mitigate any backlash.
How can companies navigate the complexity of the constantly evolving ESG regulatory landscape? What voluntary initiatives are worth a consideration? What material non-financial topics are emerging and developing? Finally, with policymakers being the key stakeholder group for business, the report helps to analyze and identify their activities as well as potential impacts on business.
Download your Global Insights Report to stay on top of your ESG risks.