In April 2022, KPMG released benchmarking of the climate-related disclosures of 35 major banks. The banks spanned the UK and Europe, Australia, Canada, Asia and the US. New in June 2022, those disclosures are compared to the recommended disclosures of the Task Force on Climate-related Financial Disclosures (TCFD).
Effective immediately
KPMG’s latest analysis of banks' climate-related disclosures confirms that the overall progress banks are making in disclosing climate-related matters slowed down in 2021.
In the first part of the analysis (published in April 2022) KPMG looked at banks’ climate-related disclosures within their 2021 annual reports.
In this second part of the benchmarking analysis (published in June 2022), KPMG look at how the climate-related disclosures of banks align with the recommended disclosures of the TCFD.
In phase one of the benchmarking analysis, KPMG found that where there is regulation (or even regulatory guidance) on banks’ climate-related disclosures, there are enhanced disclosures by banks in annual reports. This finding was confirmed in an even more pronounced way in phase two of KPMG’s analysis – similarly banks in countries where there is regulation (or even regulatory guidance) on the matter provided climate-related information that aligns better with the TCFD recommended disclosures.
The global benchmarking analysis includes three key findings:
The analysis comes at an important moment when the SEC, the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) all have climate-related proposals out for comment, which further pushes companies to consider how to effectively operationalize climate risks, which can include:
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