Post by sweetpea33 on Jan 24, 2024 22:31:54 GMT -5
To prepare for this increased scrutiny companies should examine their current climate disclosures and consider replacing boilerplate text with more specifics, including physical impacts or transition impacts related to climate change. 2. Assess your exposure to water risks and prepare to report on them. For companies in certain industries, it is not a question of if but when water crises will cause major disruptions. But awareness of these risks has not translated into much action — water crises have been listed by the World Economic Forum as a top five global risk in each of the last nine years, yet few companies publicly disclose their water risks.
The Conference Board analysis confirms disclosure levels are low across most sectors. For example, fewer than one in 10 companies report Email List their water stress exposure (which refers to the percentage of freshwater withdrawn in regions with high baseline water stress). As companies prepare for this year’s proxy season, they should pay close attention to their efforts on climate, water and biodiversity.
There are signs that disclosure activity is picking up in some sectors, however. One-third of companies in the materials sector, for example, disclose their water stress exposure, up from 7 percent in 2019. The energy sector also saw disclosure rates more than triple in one year. Investor-focused reporting frameworks are clearly having an impact on disclosure: Both the Sustainabiity Accounting Standards Board (SASB) and TCFD include water stress exposure as a significant metric for companies in the materials and energy sectors. Companies that have not already done so should assess their exposure to water risks and prepare to report on them. Their competitors are increasingly doing so, and investors are paying attention.
The Conference Board analysis confirms disclosure levels are low across most sectors. For example, fewer than one in 10 companies report Email List their water stress exposure (which refers to the percentage of freshwater withdrawn in regions with high baseline water stress). As companies prepare for this year’s proxy season, they should pay close attention to their efforts on climate, water and biodiversity.
There are signs that disclosure activity is picking up in some sectors, however. One-third of companies in the materials sector, for example, disclose their water stress exposure, up from 7 percent in 2019. The energy sector also saw disclosure rates more than triple in one year. Investor-focused reporting frameworks are clearly having an impact on disclosure: Both the Sustainabiity Accounting Standards Board (SASB) and TCFD include water stress exposure as a significant metric for companies in the materials and energy sectors. Companies that have not already done so should assess their exposure to water risks and prepare to report on them. Their competitors are increasingly doing so, and investors are paying attention.