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EY Study: Global Companies Show Progress in Climate Disclosures but Lag in Linking Climate Impact to Financial Performance

Big 4 CornerEY Study: Global Companies Show Progress in Climate Disclosures but Lag in Linking Climate Impact to Financial Performance
Global companies are showing progress in climate disclosures, with improvements in both the number of businesses reporting on climate-related factors and the quality of reporting, according to a study by EY. The study, part of EY’s fifth annual Global Climate Risk Barometer, analyzed disclosures from over 1,500 companies in 13 climate risk-exposed sectors and 51 countries. The report found a marginal increase in disclosure quality to 50%, compared to 44% last year. The energy sector scored the highest in coverage (95%) and quality (55%), and the insurance sector led within financial industries with a coverage score of 93% and quality reaching 55%. However, the study highlights a need for substantial work to prepare for reporting against the new sustainability disclosure standards from the IFRS Foundation’s International Sustainable Standards Board. The report also reveals that companies are more focused on risks than opportunities in climate reporting, and there’s a lag in disclosing the links between climate impact and financial performance.

Click here to access the report.

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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