The Climate Disclosures Standards Board (CDSB) has released a report entitled: “Falling Short? Why environmental and climate-related disclosures under the EU’s Non-financial Reporting Directive must improve.” CDSB organised a webinar to discuss the report and the EU’s Non-financial Reporting Directive.
“78% of Europe’s largest companies are falling short of reporting environmental and climate-related risks despite EU guidelines.”
CDSB’s objective is to provide decision-useful environmental information to markets via the mainstream corporate report. The aim of the review is to provide in-depth insight on the state of the environmental and climate disclosure. The review considered 50 companies across 8 jurisdictions and 10 sectors. The overall conclusion is that progress is being made, but that substantial improvements are still required in regard to the quality, comparability and coherence of disclosures.
Key findings from the report
- Disclosures are improving but fall short of providing investors and wider stakeholder with the quality of information they required
- Ensuring consistency, linkages and coherence across disclosures under the different content categories is key
- Adoption of TCFD continues to be slow and integration with NFRD disclosure is limited
- The interface with national-level disclosure requirements must be considered carefully to support coherent and concise disclosures
- Risk is an important area for improvement to ensure that disclosure supports improved decision-making
Read the webinar’s notes.