“Scenario analysis is one of the key recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Financial stakeholders need forward-looking information to help them understand what may be coming down the line for their portfolios in terms of climate-related risks and opportunities.
Yet, detailed, longer term, forward-looking reporting has not been the norm for companies that have traditionally provided retrospective information along with short-term earnings forecasts. Adopting a sophisticated forward-looking view on reporting of climate risk is, therefore, a significant culture shift for many companies, most of which likely lack in-depth subject matter expertise on their teams. This is a steep learning curve that companies need to climb quickly.”
By the time the next edition of the KPMG Sustainability Reporting Survey is published, we expect to see a significant shift in global sustainability reporting practice driven by the above factors. We predict a further tightening of focus of non-financial reporting on investors’ needs, more harmonized reporting based on common metrics and further coalescence towards a global corporate reporting system. The time has come.”