Companies failing to take action on decarbonisation

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Businesses in Ireland and around the world are doing better when it comes to disclosing their climate risks.

Those are among some of the conclusions of a new report by EY, which examines the efforts of organisations to report and act on sustainability challenges.It measures their behaviour against recommendations of the Task Force on Climate related Financial Disclosures.

UK firms scored highest on quality and coverage, but South Korea and other European countries including Ireland are also among the countries where scores are high."We're witnessing a sea change in the regulatory landscape around sustainability and climate risk, with new regulatory bodies and proposed standards, as well as examples of individual countries introducing their own rules," said Lorraine McCann, Director, Climate Change and Sustainability Services, EY Ireland.

While more than half of the references to climate impact in these statements are qualitative rather than quantitative, it says. "This tells me that more companies are focused on ticking the box across the relevant TCFD disclosure areas, and failing to address the critical question which is 'what is the financial impact of climate change in the financial statements?’"

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