Companies are under pressure to disclose climate risk exposure and resilience strategies
“The world is in a race against time. The human race has only 30 years to cut global carbon emissions to net zero if we are to limit global warming to 1.5˚C and mitigate potentially catastrophic impacts of climate change. Business is not only a critical player in achieving the net zero goal; it is also at risk from the physical effects of the climate crisis and the economic impacts of transitioning to a net zero economy.
That’s why companies are under pressure to disclose their exposure to climate-related risks and explain their strategies to ensure resilience and competitive advantage in a net zero world. The importance of climate risk disclosure has been increased by the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and growing momentum towards mandatory disclosure in many jurisdictions.
KPMG’s research has proposed a set of quality criteria for climate-related disclosure and analyzed how the world’s 250 largest companies measure up against these criteria. The results enable any company to assess its own reporting against the performance of this global leadership group.
As Head of KPMG IMPACT, a new KPMG initiative to bring the best of KPMG together to help achieve the UN Sustainable Development Goals, I am deeply proud of this work and hope you find it insightful.”
* Source: https://fortune.com/global500/2019/
Balanced reporting on the SDGs is important to maintain public trust
“Balanced SDG reporting is important to show that a company is aware of how it contributes to global problems as well as how it helps to solve them. Disclosing both positive and negative impacts on the SDGs provides enhanced transparency and can therefore help to build trust between the company and its stakeholders.
Companies that turn a blind eye to their negative impacts and focus their reporting only on the positive, risk losing credibility and public trust. They also open themselves to accusations of “SDG washing”, the practice of using the SDGs as a platform to create positive PR for themselves rather than as a framework to deliver genuine change. Similarly, if companies are serious about helping to deliver the SDGs, then they need to set clear SDG-related performance goals and report on progress against them.”