Asia-Pacific companies rank second on climate-related financial disclosures while peers in Europe show best improvement, TCFD report shows
- Firms in Asia-Pacific improved their average score as some jurisdictions started imposing such requirement in annual reports to shareholders
- European firms made the biggest improvement in score in 2021 as climate-change agenda gained prominence, momentum
The average level of reporting by 273 firms in the Asia-Pacific region was 36 per cent for the 2021 fiscal year, an increase from 34 per cent in 2020 and 25 per cent in 2019, according to the fourth annual review published by the Task Force on Climate-related Financial Disclosures (TCFD).
Peers in Europe scored 60 per cent versus 50 per cent a year earlier, while those in North America improved to 29 per cent from 20 per cent. Latin American firms averaged 28 per cent versus 26 per cent in 2020. Peers in the Middle East and Africa achieved 25 per cent versus 22 per cent previously.
The latest study used artificial intelligence software to examine the annual reports of 1,434 companies in eight major industries. They were ranked on 11 TCFD disclosure criteria within a globally-recognised framework. Timing may have contributed to the better score, said Elsa Pau, CEO of BlueOnion.
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“The first TCFD reporting requirements [imposed] by regulators, such as in Hong Kong, happened within the past 12 months, thereby raising the number of disclosures,” said Pau, founder of the portal that tracks sustainability data for companies and funds. It takes time to see whether it is backed by real commitment and strategies to counter climate issues, she said.
