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Laxman Pai, Opalesque Asia: Out of 134 highly carbon-exposed companies that account for the bulk of pollution, 98 percent did not provide evidence that their 2021 financial statements had taken into account the effects of climate-related matters, said a study.
In a report "Still Flying Blind -The Absence of Climate Risk in Financial Reporting", the Carbon Tracker Initiative pointed out that companies may be making more net-zero commitments, but addressing climate risk is not showing up in their financial statements.
Incidentally, these 134 multinational companies are responsible for up to 80% of corporate industrial greenhouse gas emissions. The report also said that 96% of auditors reviewed did not consider the impact of emissions-reduction targets, changes to regulations, or declining demand for company products in their audits.
In general, companies failed to disclose the relevant quantitative climate-related assumptions and estimates used to prepare the financial statements, even when they indicated that climate risks may impact these assumptions.
The lack of information available to investors is underscored by the fact that none of the companies met all the Climate Action 100+ Climate Accounting and Audit Assessment (CAAA) methodology metric requirements, which includes the analysis of company financial statements. Indeed, only eight, or 6%, received "Partial" scores by providing all the information required by the CAAA methodology for at lea...................... To view our full article Click here
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