Japan and the US need to do more to enforce existing reporting and auditing standards to highlight climate risks to investors, Carbon Tracker said following an assessment covering five jurisdictions. Companies in the EU and the UK led the pack, in terms of the disclosure of climate information in financial statements, followed by Australia. “Our latest research reinforces the urgent need for regulators worldwide to step up, enforce existing reporting standards, and ensure that companies and auditors evidence their consideration of financial impacts of climate change and the energy transition,” said Sepi Roshan, a Senior Analyst with the think tank’s accounting, audit and disclosure team. “The global financial system must transition from ‘flying blind’ to full transparency and accountability around reporting of financial risk.” He added that, without decisive regulatory action, investors, policymakers and regulators themselves, “will remain in a ‘holding pattern’, in the face of significant undisclosed financial risks and impacts of climate change and the energy”. The surveyed companies represent 90% of global capitalisation.
