Even investors want clearer reporting

Companies are falling short of investor’s expectations for clearer reporting on climate crisis issues, according to a new report, ‘Climate-related corporate reporting’, from the FRC Financial Reporting Lab. So what do investors want? Well, they outlined that they would like companies to articulate:

• How boards consider the topic of climate change.

• Whether, and how, the business model may be affected by climate change, whether it remains sustainable, and how the company may respond to the challenges posed.

• What the opportunities and risks are, including the prioritisation of risks and their likelihood and impact.

• What changes the company might need to make to strategy to capitalise on a changing climate and related opportunities.

• What scenarios might affect the company’s sustainability and viability.

• How the impact is measured and how the company measures climate-related challenges and the success of its strategy through strategically aligned, reliable, transparent metrics and financially-related information.

FRC’s CEO Jon Thompson said: “As societal and investor expectations evolve, alongside the regulatory environment, it is clear companies need to rapidly increase their transparency and improve their reporting to meet this demand.”

Go to https://tinyurl.com/yy5vbrgq for more.