Your guide to Climate Reporting

In this report, The London Stock Exchange Group (LSEG) dive into the necessity of companies with clear plans for a transmission to a low-carbon economy for investors, as they move their money from firms without clear plans for the issue to firms who take it seriously. 

This report aims to guide companies who are taking their first step on the path of climate disclosures against the TCFD framework.

Key takeaways from this report include:

• More than 2,000 companies representing in excess of $20 trillion in market capitalisation have announced their support for TCFD and its work since its launch in 2017.
• Portfolios most vulnerable to climate risk are 30% more likely to default in 2050 compared with 2020 under the hot house world scenario: five times more than the average portfolio increase under the same scenario.
• The Financial Conduct Authority (FCA) introduced a requirement for commercial companies with a premium listing either to make TCFD disclosures or explain why they are not doing so.
• An annual CDP report covering companies worth three quarters of European market cap finds 47% reward their senior management for managing climate topics, with one in four tying incentives to climate targets.