A new report from a G20 advisory body highlights significant growth in companies’ disclosure of climate-related risks and opportunities between 2020 and 2022

The report reveals a 26 per cent  increase in companies disclosing their climate-related risks and opportunities, while oversight by company boards in this regard rose by 25 per cent.

The report, based on Task Force on Climate-related Financial Disclosures (TCFD) recommendations, reveals a 26 per cent increase in companies disclosing their climate-related risks and opportunities, while oversight by company boards in this regard rose by 25 per cent.

The Task Force assessed the current state and evolution of climate-related financial disclosures using artificial intelligence technology. It reviewed reports of more than 1,350 public companies over a three-year period — fiscal years 2020, 2021 and 2022.

Over 70 per cent  of businesses disclosed their usage of metrics connected to the environment, setting a new record. Both the reporting of greenhouse gas emissions and climate-related targets (both at 66 per cent ) demonstrated significant advancement, with a 24 per cent increase in the number of businesses reporting on their climate-related targets.

The percentage of companies reporting on their climate-related targets increased by 24 percentage points between 2020 and 2022, according to the report.