Trucost’s analysis shows that companies’ standard practice in climate risk management and reporting has continued to improve since previous years, but still has a long way to go to approach the summit and tackle climate issues in ways that will meaningfully reduce their risk and impact. Headline findings include the following:
- Companies have made better progress responding to TCFD than managing supply chain risk and carbon pricing risk, with over 75% of companies still on the couch for those risks.
- Companies based in EMEA are more actively working to get to base camp across all three themes, with APAC falling behind for both supply chain management and TCFD disclosure. Companies in NA are the slowest to get off the couch on internal carbon pricing.
- Between 2017 and 2018, over half of the companies reviewed reduced their carbon emissions, but there is still some way to go with indirect carbon emissions. Only 6% of companies fully report on the material supply chain categories and actively engage or target the most material issues.
- Over 90% of companies have set carbon reduction targets, but only 14% are science-based and in line with reductions needed to achieve the Paris Agreement.