A benchmarking of “2022 vs. 2021” climate disclosures

Check out this report from “The Conference Board” that includes climate disclosure benchmarks for 2022 and 2021, broken out by industry sectors among the S&P 500 and Russell 3000.

Among other trends, the report notes:

– Climate risk disclosures increased in 2022 from the previous year, with S&P 500 companies still the most likely to disclose; specifically, 60% of companies in the Russell 3000 Index still did not report climate risk in 2022, compared to only 26% of companies in the S&P 500.

– Industries with the highest rate of climate risk disclosure typically had climate target years furthest in the future; for example, in utilities it was 2045, while in energy it was 2040. Those with the lowest disclosure had a target year closest to the present date (health care and IT in 2034, with communication services having the target year farthest in the future relative to the sector’s average climate risk disclosure rate).

– Companies with regulatory and reputation risks associated with climate change are likely to have established governance structures and knowledge related to climate risks. They also tend to have a better understanding of what is needed to meet sustainability targets.