Market Forces’ research has revealed that just 7 companies in the ASX50 (14%) have disclosed scenario analyses in line with the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Worryingly, 31 companies (62%) have not mentioned the TCFD recommendations at all, despite 23 of these companies operating in sectors that the TCFD identifies as most exposed to the potential financial impacts of climate change.
The findings show that investor engagement is currently failing to procure robust climate risk reporting from many major Australian companies. Investors, like our super funds, must engage more forcefully with companies to ensure they improve disclosure and set targets to reduce emissions. Companies that fail to comply should be subject to punitive action such as voting against remuneration, replacing directors, or divestment.