by Katherine Blue
As the world races to cut global carbon emissions and avoid the potentially catastrophic impacts of climate change, a growing number of companies worldwide are disclosing their climate-related risks and outlining their strategies to remain competitive in a net-zero world.
In a new report, "Towards Net Zero," KPMG examines how the world's biggest companies report on climate risk. In our analysis, we developed 12 quality criteria for good corporate reporting on climate risk and net-zero transition to analyze and compare the maturity of climate risk and net-zero reporting by the world's 250 biggest companies (G250).
On the surface, it is easy to conclude that the G250 are underperforming in terms of climate risk reporting and decarbonization activities. But in reality, they have made significant progress over the last five years. Today, more than half the G250 acknowledge climate change as a financial risk.
For the U.S. companies in the G250, the report found:
Corporate climate-risk reporting is on the right track. This report can help investors, lenders, insurers, asset managers, and ratings agencies understand the current reporting maturity of the world's leading global companies. And, as calls for comprehensive climate disclosures grow louder, it can help corporate reporting, investor relations, and sustainability professionals shape reporting on climate risk and net- zero transition—transform what today is widely viewed as a material risk, into a major opportunity.