In May 2021, Millani evaluated the quantity and the quality of current TCFD disclosure by issuers listed on the S&P/TSX Composite Index. Millani found that 23% of listed issuers are currently aligning to TCFD recommendations.
The results demonstrate a current gap in climate reporting for Canadian issuers amidst increasing regulatory pressures and investor demand for climate-related disclosures. Further findings of the analysis are presented in this report.
This study summarizes key insights drawn from interviews with 23 Canadian institutional investors, representing $4.4 trillion of assets under management, on how issuers can align with TCFD recommendations and provide decision-useful information for investors.
The results reveal that the investor community is mindful of the challenges of TCFD-aligned reporting. Most respondents advised to start with what can be reported for now, and to think about the reporting journey as iterative and progressive.
The high number of guidelines about what ESG information is required or recommended to be disclosed means companies face barriers and strained resource capacities to focus on quality ESG disclosures. This report looks at various initiatives and the future of sustainability reporting.
Author: Commonwealth Climate and Law Initiative, Climate Governance Initiative
Industry Group: All Industry Groups
Research / Insights - 2021
A new legal Primer produced jointly by the Commonwealth Climate and Law Initiative and the Climate Governance Initiative (CGI), examines the fast-changing landscape of climate risks and opportunities for business, and the implications for board directors’ legal obligations. The Primer on Climate Change: Directors’ Duties and Disclosure Obligations, which examines 20 countries and the European Union, is the first-ever legal primer that takes a cross-jurisdictional view across such a broad sample of major civil law and common law systems. The Primer shines a spotlight on a set of core universal principles, as well as notable variations in breadth and stringency between the leading jurisdictions and the broader group.
Author: The Prince's Accounting for Sustainability Project
Industry Group: Materials and Buildings
Research / Insights - 2021
This practical example shows how GSK is using the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) to understand and communicate how climate change could affect its business. GSK has set up a Finance Sustainability Champion Network to support their goal of achieving net zero impact on climate by 2030 – applying the TCFD framework is a key part of this.
GSK’s work has included:
- Making the business case for climate-related disclosures
- Conducting scenario analysis
- Developing data-driven metrics and targets
- Preparing the disclosures by working collaboratively
- Applying climate-related financial risks to business planning and decision making
This case study is part of A4S's guidance on supporting and implementing the TCFD recommendations.
The EY Global Climate Risk Disclosure Barometer provides a global snapshot of the increasing corporate focus on climate risks and opportunities as pressure from stakeholders moves them up the boardroom and executive agenda.
The research draws on public disclosures of companies on the uptake of the Task Force on Climate-related Financial Disclosures (TCFD) across highly impacted sectors. The disclosures of more than 1,100 companies across 42 countries were included in the assessment.
This report is based on a detailed assessment of individual banks’ disclosures by our BCS Consulting. The ambition in undertaking this research is to create further transparency across the industry and objectively establish the progress that is being made towards a low-carbon economy. Furthermore, the report highlights the key areas where more work is still to be done and includes a view on how to approach this
This report is the second update on progress, issued by the Climate Action 100+ initiative. It summarises overall progress of the initiative including an update on measurement and benchmarking, key focus company commitments against the initiative’s goals, growth in signatories, and a sector level update on company performance against a set of indicators aligned to the aims of the initiative.
Japan’s primary prudential regulator, the Bank of Japan, has acknowledged that climate change poses a systemic risk to the Japanese economy and financial system. There is now overwhelming scientific and financial evidence of the material impacts of climate change on businesses. Directors in Japan have three primary duties, a duty of loyalty, a duty to be in compliance with all laws, regulations, and ordinances, and the company articles, and a duty of care. Directors’ duties are set out in the Companies Act of Japan, the articles of incorporation, and the Civil Code. The obligation of directors to consider the implications of climate change risk is grounded in the duties each director owes to the corporation they serve. In their oversight of management of climate risks, directors must meet the objective standard of what a reasonably prudent person would do in comparable circumstances.
Industry Group: Coal, Metals and Mining, Oil and Gas
Research / Insights - 2021
The study looks at 60 of the most carbon-intensive extractive companies and at the extent and quality of disclosures they make in the management report and in the financial statements about the potential impact of climate change on their business. Clearly there are risks to the long-term viability of their activities which would impact their mineral or hydrocarbon reserves and the related infrastructure and leave them with ‘stranded’ assets. Overall the findings are that the reporting is not good enough and that annual reports lack clarity of and depth in climate change related disclosures.