Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Innovation Investing Conference
    • 2022 Defined Contribution East Conference
    • 2022 ESG Investing Conference
    • 2022 DC Investment Lineup Conference
    • 2022 Alternatives Investing Conference
Breadcrumb
  1. Home
  2. ESG
September 26, 2018 01:00 AM

More firms disclose climate change information, but few disclose impact on business risks – report

Sophie Baker
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Getty Images

    While the majority of firms disclose information aligned with global climate change recommendations, few describe the financial impact of associated risks on their company, finds a new report.

    The Task Force on Climate-related Financial Disclosures published its status report Wednesday on the extent to which companies in their 2017 reports included information that aligned with task force recommendations made in June 2017.

    The Financial Stability Board task force compares disclosures of more than 1,700 firms from diverse sectors and with broad geographical representation against its recommendations. The four guidelines relate to the effective disclosure of climate-related financial risks and cover the themes on governance, strategy, risk management, and metrics and targets.

    The report categorized company disclosure findings as "few," "some," "several," "majority" and "most." Proportions of companies within each category were not disclosed.

    More than 50% of the companies surveyed disclose information aligned with at least one of the recommended disclosures. While many companies describe climate-related risks and opportunities, few disclose the financial impacts of climate change on their firms.

    A minority of firms disclose forward-looking climate targets or the resilience of their strategies under different scenarios, including a 2 degrees Celsius or lower scenario.

    The survey also found disclosures vary widely across industries, with more non-financial firms reporting climate-related metrics and targets than financial institutions. However, financial companies were found to be more likely to disclose how they have embedded climate risk into their overall risk management.

    The survey also found that disclosures are made across multiple reports, with information provided in financial filings, annual reports and sustainability reports.

    The report also outlined findings from 25 asset owners' disclosures. When it comes to governance, several asset owners provided information about the role of the board in overseeing climate-related issues, and several also provided information on the role of management. However, only some disclosed the roles of both the board and management.

    Under the strategy theme, the majority of the 25 asset owners provided information about climate-related risks and opportunities, and how those have affected their strategies. Some also described time frames associated with their climate-related issues, and several mentioned the United National Paris Agreement — a climate change pact reached in 2015 — or the potential for varying scenarios related to climate change. However, only a few described the resilience of their strategies under different scenarios.

    Regarding risk management, the majority of asset owners provided information on how they identify or assess climate-related risks, and the majority also described actions they take to manage these risks, such as engaging with money managers or companies.

    Under the metrics and targets recommendation, the survey found the majority of asset owners described metrics used to assess or monitor climate-related risks, and a few provided several metrics with an explanation of their meaning. Several also provided information on targets used and performance relative to those targets.

    Also Wednesday, the task force said the number of firms supporting the recommendations had grown to 500 with a market capitalization of more than $7.9 trillion; up from 100 firms when the recommendations were launched in June 2017. A comparative market cap figure was not available.

    The task force will, at the FSB's request, publish a further status report in June 2019 for analysis of disclosures made in 2018 financial reports.

    Related Articles
    Europeans paying attention to diversification, risk hedging, climate change – s…
    Environmental, social issues big in proxy season
    AODP: 63% of largest public pension funds don't properly assess climate-change …
    Climate risk disclosure bill introduced in Senate
    OPTrust CEO calls on institutions to incorporate climate risk into investing
    90% of investors think ESG portfolios perform as well or better than non-ESG – …
    Pension funds urge high-emissions companies to review lobbying practices
    Global investors call on governments to back Paris Agreement, stronger climate …
    Recommended for You
    ONLINE_190309882_AR_0_XFZKIXDKXIME.jpg
    Vanguard: On course to net-zero investment portfolio goal
    ONLINE_190519976_AR_0_TYCWEJFZBOUA.jpg
    SEC wants more disclosure on funds using ESG factors
    Oil Refinery Poland Climate Carbon_i.jpg
    Divesting isn't answer to reducing carbon, Carlyle study finds
    OCIO, Anchor in Rough Seas
    Sponsored Content: OCIO, Anchor in Rough Seas

    Reader Poll

    May 23, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Crossroads: Politics, Inflation, & Bonds
    Credit Indices: Closing the Fixed Income Evolutionary Gap
    Forever in Style: Benchmarking with the Morningstar® Broad Style Indexes℠
    Q2 2022 Credit Outlook: Carry On
    Leverage does not equal risk
    Is there a mid-cap gap in your DC plan?
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    May 23, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Innovation Investing Conference
      • 2022 Defined Contribution East Conference
      • 2022 ESG Investing Conference
      • 2022 DC Investment Lineup Conference
      • 2022 Alternatives Investing Conference