According to the new EY Global Climate Risk Barometer, global businesses are stepping up their efforts around climate disclosures, but they are not backing them up with action.
Now in its fourth year, the study examines 500 businesses in 47 countries to see if they are meeting the 11 recommendations set by the Task Force on Climate-related Financial Disclosures (TCFD).
The good news is that this year’s average score – when it comes to disclosing these climate risks — is 84 percent, which is a considerable increase from 70 percent in 2021.
However, although more companies are reporting on climate risk, they are not providing meaningful commentary about the challenges they face. In addition 51 percent are still either not conducting scenario analysis, or are not disclosing the results.
The key takeaway is that most companies are still not translating disclosures into concrete actions.
When it comes to the United States, we have been covering the rise of Climate Risk Disclosures, since they were proposed in March 2022.
Driven by the Securities and Exchange Commission (SEC), Climate Risk Disclosures require certain climate-related disclosures in companies’ registration statements and periodic reports. This includes information about climate-related risks that are likely to have a material impact on their businesses.
The latest EY Global Risk Barometer reinforces how disclosing climate risk is becoming vitally important, and that more needs to be done by the business community to ensure the future safety of Earth.
This is why global businesses need to develop comprehensive marketing and communications programs that bring their climate disclosures to wider audiences – such as their customers, prospects, and the public at large.
A core part of this should be developing landing pages using the .Earth domain as the foundation. These micro-sites can showcase a wide-range of content – from blog posts to white papers to company climate mitigation manifestos, and more.
Those companies that take a proactive step in developing these types of communications campaigns will not only be one-step-ahead when it comes to climate risk reporting, but they will also showcase how their brands are truly working to save our planet.
If your company does not already have a .Earth domain, now’s the time to secure one for any climate risk-associated marketing efforts.
To learn more about the .Earth domain, visit Voices.Earth. In addition, many organizations and individuals are sharing their voices about the benefits of a .Earth domain in our Voices.Earth podcast series.