Climate change has been a major priority for Australian Council of Superannuation Investors (ACSI) and its members over many years. ACSI members have long been aware the transition to a low carbon future presents clear economic risks, as well as opportunities for new investments. This is why, for the past decade, ACSI has actively engaged with companies, and regulators, to seek improvements in the way climate risk is managed and promote the orderly transition to a low-carbon economy.
To assess climate risk, investors require sufficiently granular climate-related disclosure to adequately understand their investment exposure and consider the impacts of transition and physical risks. This research provides an overview of the current state of climate-related disclosures in ASX200 companies.
The research also highlights examples of best practice, as well as gaps in reporting, a state-of-play for TCFD adoption and an insight into how companies are setting objectives for meeting the Paris Agreement. Additionally, we examine the disclosure, comparability and depths of climate scenario analysis being provided to the market as well as emerging disclosures of physical risks.
In preparing this research, ACSI reviewed all publicly available documents produced by ASX200 entities as at 31 March 2020 – this includes Annual Reports, Sustainability Reports, standalone TCFD Reports, company websites and ASX announcements. Additional context was drawn from ACSI’s ongoing engagement with directors of ASX200 companies.