Are companies hiding how climate change affects them?

By: Trademagazin Date: 2023. 12. 19. 10:02

Despite the fact that companies define comprehensive climate goals under pressure from investors, nearly half of them (47%) do not disclose how they intend to meet them, according to EY’s global climate risk barometer.

Nearly three-quarters (74%) of the examined companies do not quantify the impact of climate change on their operations in their statements. This factor is not treated according to its weight even when evaluating the financial results.

Despite the fact that the detail and quality of company reports showing the risks of the climate situation improved somewhat compared to last year (by 6 percent), the pace of practical steps is still slow. In addition to reporting, real and comprehensive measures would be needed so that companies can achieve the set climate goals.

“Environmentally conscious investors are increasingly taking climate risks into account in their investments, which puts serious pressure on companies. Companies that understand how the impact of climate change is connected to their business strategy will be able to meet the new disclosure requirements more easily, while those actors that continue to only try to comply formally will face serious difficulties as the requirements become more stringent.

– emphasized Ákos Lukács, the head of EY’s area dealing with Climate Protection and Sustainability Services.