Two in three major UK companies to report climate risks in 2019

23rd January 2019


Web hot uk shutterstock 1140924419

Related Topics

Related tags

  • Business & Industry ,
  • sea ice loss ,
  • Reporting

Author

Alasdair Dalzel-Job

Two-thirds of the UK's top 500 companies will disclose climate-related risks and opportunities in their annual reporting this year, a survey by Carbon Trust has revealed.

Boosting reputations is the main driver, with seven in ten firms saying they could increase their brand's value by reporting in line with the Task Force on Climate-related Financial Disclosures' (TCFD) recommendations.

However, it was also found that less than a quarter plan to report their climate risks and opportunities fully in line with the TCFD, despite very few envisaging any negative consequences in doing so.

Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change, said there is “still a way to go“ before all the UK's largest firms fully understand the importance of thorough disclosures.

She continued: “Reporting on climate-related risks is an essential step to identifying challenges and grasping opportunities to be found in the transition to a low-carbon economy.

“Many business leaders already recognise this, understanding the financial and reputational benefit it can help unlock. It's incumbent on others to follow suit and investors to play a key role in ensuring this happens.“

The survey findings also show that almost one-third of the UK's largest companies see financial benefits in reporting in line with the TCFD recommendations.

This is composed of 12% that predict improved access to capital, 10% that believe the cost of capital will be less, and 9% that anticipate a strengthened credit rating.

One-fifth of business leaders think disclosures will directly result in an increased company valuation, with 37% foreseeing reduced shareholder pressure, and 29% expecting a growing diversity of investors.

Moreover, three-fifths said they could not identify a single disadvantage that would occur for their company in the short-to-medium term by providing disclosures in line with the TCFD recommendations.

Carbon Trust's business services managing director, Hugh Jones said: “We are now able to see how our changing climate is moving markets more quickly than many had anticipated.

“For corporate leaders, going through the process of assessing their company's climate change opportunities and risks is a vital strategic tool for navigating the necessary transition to a sustainable, low-carbon economy.“

Image credit: Shutterstock

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

UK off track for net zero by 2030, CCC warns

Only a third of the emission reductions required for the UK to achieve net zero by 2030 are covered by credible plans, the Climate Change Committee (CCC) has warned today.

18th July 2024

Read more

Almost three-fifths of UK environmental professionals feel there is a green skills gap across the country’s workforce, or that there will be, a new survey has uncovered.

4th July 2024

Read more

Climate hazards such as flooding, droughts and extreme heat are threatening eight in 10 of the world’s cities, new research from CDP has uncovered.

3rd July 2024

Read more

Ahead of the UK general election next month, IEMA has analysed the Labour, Conservative, Liberal Democrat, and Green Party manifestos in relation to the sustainability agenda.

19th June 2024

Read more

Nine in 10 UK adults do not fully trust brands to accurately portray their climate commitments or follow the science all the time, a new survey has uncovered.

19th June 2024

Read more

Just one in 20 workers aged 27 and under have the skills needed to help drive the net-zero transition, compared with one in eight of the workforce as a whole, new LinkedIn data suggests.

18th June 2024

Read more

With a Taskforce on Inequality and Social-related Financial Disclosures in the pipeline, Beth Knight talks to Chris Seekings about increased recognition of social sustainability

6th June 2024

Read more

Disinformation about the impossibility of averting the climate crisis is part of an alarming turn in denialist tactics, writes David Burrows

6th June 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close