'Analysis by CDP and the Climate Disclosure Standards Board shows that while more and more corporates are aware of climate risks, few are driving meaningful action to address them' report Business Green (19 March). The research into 1,681 companies across 14 countries and 11 sectors disclosing to CDP looks at the four areas of disclosure identified by the Task Force on Climate-related Financial Disclosures (TCFD) – governance, strategy, risk management and metrics and targets – and highlights whether companies in specific sectors and countries are best prepared to disclose information under those themes. The press note and full report (pdf) are on CDP & CDSB website.
'Only around one in ten companies link pay and other incentives for board members or managers to objectives on how they are tackling climate change and the associated risks for their business.' note the Financial Times. 'Even though awareness of climate change issues is high, the low proportion of companies linking climate-related objectives with how executives are rewarded reduces the likelihood that companies will do enough to tackle climate change, said Simon Messenger, managing director of the CDSB. ...Germany has the highest proportion of companies that link incentives for board members with climate change goals, with 29 per cent doing so. In France, the second highest raking country, the proportion was 25 per cent.
The report shows that the USA has lowest proportion using (15%) and preparing to use (9%) carbon pricing, while the UK has the highest proportion of companies with board oversight of climate change (96%), but only 17% of financials companies disclose Scope 3 emissions from investments. China has the lowest percentage of companies disclosing GHG emissions across Scope 1, 2, and 3.