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BAMOS 2021 / 2022 Summer
Article
Climate disclosure trends : good progress but a way to go
Stephanie Downes & Paul Dobson Deloitte Australia
Investors want to know climate risks and opportunities , including company net zero commitments . Photograph ©
Kelly Sikkema on Unsplash
There is an ongoing need and pressure for companies in all sectors to develop quality and consistent disclosures of the financial and strategic implications of climate change on their business — now and into the future .
The 2021 Taskforce on Climate-related Financial Disclosures ( TCFD ) Status Report
Last year was a positively explosive one for uptake of the most widely adopted climate disclosures framework , the Taskforce on Climate-related Financial Disclosures ( TCFD ). The fourth
TCFD Status report , released on 14 October 2021 , shows supporter numbers have grown by a third since 2020 – bringing the total to 2,600 companies globally , and a combined market capitalisation of over $ US25.1 trillion . In addition , eight countries are considering mandatory TCFD disclosure-aligned reporting requirements — Brazil , the European Union , Hong
Kong , Japan , New Zealand , Singapore , Switzerland , and the United Kingdom . Hopefully more nations will join this effort post the
26th Conference of Parties ( CoP26 ).
But companies are not singing from the same song sheet when it comes to quality and comprehensiveness of disclosures .
Reporting on and , more importantly , assessment and management of climate-related risks and opportunities takes years to integrate and each organisation is on a different stage of that journey .
Challenges and variations in disclosures
The 2021 TCFD Status Report showed that of 1,650 companies ’ reports reviewed , from 69 countries and jurisdictions in eight industries , 50 percent disclosed in alignment with at least three of the four recommendations — Governance , Strategy , Risk