I en gennemgang hedder det, at ”the market needs to become more transparent: 71% of companies in the STOXX USA 500 and 73% within the STOXX Europe 600 are disclosing all material Scope 1, 2 and 3 emissions and 23% (STOXX USA 500) and 47% (STOXX Europe 600), respectively, have an emission reduction target approved by the Science Based Targets initiative (SBTi).
Larger companies are driving overall transparency performance, but there is pressure for the rest of the market to step up. Financial institutions are increasingly expected to report transparently on their climate change-related governance practices.
This could involve climate competency within boards, explicit structures for climate oversight, and clear responsibilities for climate strategy and risk management, along with prioritising real economic impact over “virtual” emission reductions.
Addressing climate change will require increased transparency. The low-carbon transition is a hugely complex undertaking. Knowing where different actors stand in transition efforts and what unresolved technological and organizational problems exist can help direct investments, research and development efforts, and rapid policy responses to climate change.
This post examines the drivers of an increased focus on transparency around climate change, how regulatory action is shaping up, and the non-regulatory measures being taken by a variety of actors, such as litigation and active ownership strategies. The complete publication (available here) concludes with an investigation into what this means for the finance industry.”
