CLICK TO SHARE
(Reuters) - U.S. and European companies in polluting industries rarely disclose the financial risks they face related to climate change even though a global task force called on them to do so two years ago, Moody’s Investors Service said in a report on Monday.
The analysis of the public filings of 28 building materials, oil and gas and utility companies comes after the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures in 2017 recommended voluntary disclosure by companies of the financial impact of climate change.
Though 80 percent of the companies in the Moody’s sample said climate change was affecting strategic decisions, just two of the 28 linked their climate projections with an effect on cash flows and balance sheets, the report said.
Those companies were a European utility and U.S. oil and gas company, the report said without giving names. Companies the credit ratings service used in its analysis have a combined $877 billion of debt. They included Exxon Mobil Corp, Royal Dutch Shell Plc, Duke Energy Corp and Eletricite de France SA, among others.
“Although companies have made some progress in the level of disclosure they provide, standardised and consistent quantification of the financial impact from climate risks is still in a nascent stage,” Vincent Allilaire, one of the authors of the report, said in a statement.
Post a comment.
If you don't see any comments yet, congrats! You get first comment. Be nice and have fun.
CLICK TO SHARE