While the global focus on climate change has intensified over
recent years, reporting by companies on the matter has not kept
pace with the demands for information from stakeholders. It remains
high on the agenda for investors, governments and regulators, as
well as society at large. Climate change and how society responds
to it will ultimately affect all companies to some extent and
reporting on it and the risks they create for the company, is a key
challenge for the coming reporting season.
Why does climate change reporting matter?
Government policies to control climate change are crystallising,
such as the UK government's target of net zero greenhouse gas
emissions by 2050 or its ban on sales of new petrol and diesel cars
from 2030. Investors consider climate change in both allocating
capital and in pricing risk and they are, therefore, increasingly
asking companies for more transparent disclosures about climate
change risks, effects and opportunities arising
