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 Three Big Wake-Up Calls For Boards
The events of 2020 brought risks related to public health, climate change, and diversity, equity, and inclusion to the forefront of public consciousness. Yet, too many businesses are failing to incorporate external and ESG risks into their long-term strategies and to think about business model innovations to reorient towards long-term value creation.
Published jointly by Datamaran and The Conference Board, this Global Insights Report examines how some of the largest public companies reacted to the events of 2020 in their corporate reporting. It considers how senior executives and Boards can apply this knowledge in addressing other systemic and external risks.
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