Flying Blind - The Glaring Absence of Climate Risks in Financial Reporting
Carbon Tracker with the Climate Accounting Project and the PRI have launched a new report
More than 70% of listed companies that represent some of the world’s largest carbon-polluters, alongside most of their external auditors, are not fully accounting for climate-related risks in financial statements. This is despite significant financial risks faced from the climate crisis and net-zero pledges made by many.
This report examines whether 107 publicly-listed carbon-intensive firms (and their auditors) considered material climate-related risks in financial reporting. At the same time the study also assesses whether investor concerns about Paris-alignment of assumptions and estimates have been addressed.