KPMG performed benchmarking of the climate-related disclosures included in the 2021 annual reports of 35 major banks. The banks spanned the UK and Europe, Australia, Canada, Asia and the US.
In this phase one of the benchmarking analysis, we note significant differences between countries where there is heightened regulation on climate-related disclosures and where that is not (yet) the case. This leads us to believe there is a connection between regulation and disclosures.
It appears that where there is regulation (or even regulatory guidance) on the matter, there are enhanced disclosures by banks in annual reports. We will test this finding in phase two of our benchmarking analysis where we look at the climate-related disclosures in other stand-alone reports.
The analysis comes as the historic issuance of the SEC’s climate-related disclosure proposal further pushes companies to effectively operationalize climate risks.
Financial service companies must demonstrate appropriate action to:
The global benchmarking analysis includes three key findings: