Less Than Half of Global Firms Have Published Their Climate Transition Plans
The 2024 EY Global Climate Action Barometer has found that only 41% of global organizations have plans for the climate transition. The report found that while climate disclosures have improved greatly over the last couple of years, urgent action to combat the climate crisis still lacked among firms.
The report also observed an increase in disclosure coverage, noting that however, this wasn’t adequate enough to align with the international climate agenda. It also highlighted how firms couldn’t afford to ignore the potential financial impact of climate risk on their businesses.
EY Global Climate Change and Sustainability Services Leader, Dr. Matthew Bell, and the organization’s Global Climate and Decarbonization Leader, Christophe Lumsden, stated in the report that climate change was the biggest existential threat that faced humanity currently, despite the fact that this wasn’t reflected in climate disclosures of some of the biggest firms globally.
They explained that most companies still weren’t reflecting the transition or physical risks linked to climate change in their financial statements, adding that most didn’t formulate plans for transitioning to net zero economies either. These omissions, they noted, meant that most firms were unprepared for the future.
The report also called attention to the reluctance of most companies to set emission targets for greenhouse gases, revealing that only 51% of firms had objectives that went beyond 2030. This, the report argued, suggested a lack of commitment to continuous climate action.
Additionally, only 24% of firms had had their goals validated by Science Based Targets initiative, which sets decarbonization timelines that align with the Paris Agreement.
The report also pointed out the difference in performance across industries and regions, finding that the European Union and United Kingdom were leading in disclosure scores, at 60% and 69% respectively.
This is different from significant emitters like China, the United States and India, whose scores were low despite the fact that they make up more than half of worldwide carbon dioxide emissions. Sectors like mining, insurance, and energy also recorded improvements, with 59% being awarded to the energy sector.
To help speed up the sustainability transition, EY suggested that companies:
Include climate risk in their financial statements to demonstrate foresight as well as transparency
Integrate transition plans into their strategies, with a focus on targets for Scope 1-3 emissions
Allocate adequate resources to sustainability teams, which would ensure alignment
Use reliable data to anticipate climate issues and drive strategic decisions
The findings of reports like these can help companies like First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) to assess how much progress they are making based on the major issues raised in the report. From this analysis, further steps can be decided to strengthen their sustainability efforts.
NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
The 2024 EY Global Climate Action Barometer has found that only 41% of global organizations have plans for the climate transition. The report found that while climate disclosures have improved greatly over the last couple of years, urgent action to combat the climate crisis still lacked among firms.
The report also observed an increase in disclosure coverage, noting that however, this wasn’t adequate enough to align with the international climate agenda. It also highlighted how firms couldn’t afford to ignore the potential financial impact of climate risk on their businesses.
EY Global Climate Change and Sustainability Services Leader, Dr. Matthew Bell, and the organization’s Global Climate and Decarbonization Leader, Christophe Lumsden, stated in the report that climate change was the biggest existential threat that faced humanity currently, despite the fact that this wasn’t reflected in climate disclosures of some of the biggest firms globally.
They explained that most companies still weren’t reflecting the transition or physical risks linked to climate change in their financial statements, adding that most didn’t formulate plans for transitioning to net zero economies either. These omissions, they noted, meant that most firms were unprepared for the future.
The report also called attention to the reluctance of most companies to set emission targets for greenhouse gases, revealing that only 51% of firms had objectives that went beyond 2030. This, the report argued, suggested a lack of commitment to continuous climate action.
Additionally, only 24% of firms had had their goals validated by Science Based Targets initiative, which sets decarbonization timelines that align with the Paris Agreement.
The report also pointed out the difference in performance across industries and regions, finding that the European Union and United Kingdom were leading in disclosure scores, at 60% and 69% respectively.
This is different from significant emitters like China, the United States and India, whose scores were low despite the fact that they make up more than half of worldwide carbon dioxide emissions. Sectors like mining, insurance, and energy also recorded improvements, with 59% being awarded to the energy sector.
To help speed up the sustainability transition, EY suggested that companies:
Include climate risk in their financial statements to demonstrate foresight as well as transparency
Integrate transition plans into their strategies, with a focus on targets for Scope 1-3 emissions
Allocate adequate resources to sustainability teams, which would ensure alignment
Use reliable data to anticipate climate issues and drive strategic decisions
The findings of reports like these can help companies like First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) to assess how much progress they are making based on the major issues raised in the report. From this analysis, further steps can be decided to strengthen their sustainability efforts.
NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
