Climate-related Disclosures from ASX200 Growing   

Nearly 70% of the ASX200 report against the Taskforce for Climate-related Financial Disclosures (TCFD) framework – a 31% increase on the year before, according to new research by the Australian Council of Superannuation Investors (ACSI). Its research also found that 61% of the ASX200 have publicly committed to net zero, up from 48% the year before. Large companies are moving faster, and, by value, 80% of ASX200 market capitalisation now sits in companies committed to net zero. However, the research noted that “not all net zero commitments are equal, and significant gaps in detail, depth, comparability and credibility remain”. One exception is targets, where the research found a 25% jump in companies putting in place medium-term emissions reduction targets. Louise Davidson, ACSI CEO, said: “Net zero targets don’t mean much without the detail of how companies plan to transition their operations, so we’re pleased to see more companies detailing targets to meet long-term goals.” Notable disclosure gaps cited in the research include how companies are dealing with Scope 3 emissions, management of transition and physical risks under different climate scenarios and the use of carbon offsets. The research relied on information publicly reported by ASX200 companies up to 31 March 2023 including annual reports, sustainability reports, TCFD and climate reports, company websites and ASX announcements. 

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