Only one-third of FTSE blue chips reporting on climate

Collating data to report in line with TCFD becomes mandatory in the UK from 6th April

Only 30% of FTSE 100 companies are reporting on climate change risk with less than a month to go before collating data becomes mandatory in the UK.

From 6th April, the 1,300 largest UK-registered companies, including public and private firms, will be required to collate data in line with the Taskforce for Climate-related Financial Disclosures (TCFD) and report on these from next year.

However, analysis carried out by insurance broker and risk adviser Marsh and published in the report Evaluating ESG and pandemic risk reporting trends: FTSE 100 and global exchanges risk analysis 2021, found tha tless than one-third (30%) showed evidence of standalone reporting on climate change risk.

The analysis also found huge variations in the sectors; while 75% of companies in the utilities, mining, and healthcare sectors demonstrated that they had reported in accordance with the TCFD’s recommendations on a standalone basis, no companies in the support services showed evidence of having done so. This perhaps highlights investor scrutiny on the former three sectors, especially utilities and mining, which are among the highest emitters of carbon emissions.

Meanwhile, the report said a quarter of companies in the food and drinks sector had separate reports on the TCFD recommendations, while only 17% of companies in the electronics and technology, travel and leisure, and media industries reported on a standalone basis.

In the energy, chemicals, and resources sector, 40% of companies had separate TCFD-aligned reports and for construction and real estate 25%. For financial services the total was 30%.

For those that are reporting within the FTSE 100, TCFD content is within dedicated pages of their annual reports, which the report stated is a “trend expected to become commonplace within the next annual reporting period.”

It also urged groups to “tackle the more difficult aspects of TCFD compliance early” pointing to physical risk modelling.


Natalie Kenway

Natalie is global head of ESG insight for ESG Clarity and has been an investment journalist for 16 years. She won Editor of the Year at the Aviva Investors Sustainability Media Awards 2021, and was Winner...