Just 28 percent of large and mid-cap companies globally--and 49 percent of the top 75 U.S. companies by revenue--acknowledge the financial risks of climate change in their annual financial reports, according to KPMG's Survey of Corporate Responsibility Reporting 2017. None of the companies that recognize these risks quantify them in financial terms or use scenario analyses to model the potential financial impact.
"Even among the world's largest companies, very few are providing investors with adequate indications of value at risk from climate change," says Jose Luis Blasco, KPMG's global head of sustainability services.
For the report, KPMG studied 4,900 annual financial reports and corporate social responsibility reports from the top 100 companies by revenue (N100) in 49 countries. The analysis found just five countries where most of the top 100 companies mention climate-related financial risks in their financial reports: Taiwan, France, South Africa, the U.S., and Canada.
Three factors are driving growth in corporate responsibility reporting in annual reports in the...