PROGRESS IS SLOW FOR FTSE 100 COMPANIES DISCLOSING AGAINST TCFD RECOMMENDATIONS
Stakeholder communications agency Black Sun’s latest research shows that although overall disclosures requirements to the Task Force on Climate-related Financial Disclosures (TCFD) are imminent, the current progress is slow.
‘Accelerated Action for climate resilience,’ highlights that less than half of FTSE 100 chairs or chair executive address climate change in their leadership statements, and that only 7% of companies discuss the resilience of their strategy to fight climate issues. Of those who are reporting on the TCFD recommendations, 96% are financial companies.
However, there are some hopeful findings, like the 21% increase in the number companies setting net zero or science based targets compared to last year.
“Companies could do well to look at climate change holistically. Previously there was so much emphasis on up-to-the-minute reporting, that we must not forget the other side which is the long-term. As more capabilities are developed in the scenario analysis area, we will be on a better footing as these will naturally be embedded in strategic planning,” says Lian Sim Yeo, special advisor at the Singapore Exchange and vice-chair of the TCFD.
Despite companies being affected by climate change in different ways, with some needing to address material issues disrupting their business models now while others needing to address more longer-term strategies, all of them will have to respond to calls for better disclosure and reporting on challenges and activities of climate change.