How much further do companies need to go to comply with the TCFD's recommendations?

The publication of the final report by the Task Force on Climate-related Financial Disclosures last June marks a crucial step toward integrating climate data into the core of economic activities. Carbone 4, a consulting firm specializing in energy transition and climate change adaptation, has published an analysis that assesses the compliance of CAC 40 companies’ reporting with the recommendations of the TCFD’s final report.

The study covers 36 companies, which account for nearly 95% of the total market capitalization of the CAC 40. It is structured around the 11 reporting areas recommended by the TCFD report, grouped into four categories: Governance, Strategy, Risk Management, and Metrics and Targets. The exercise conducted by Carbone 4 aims to assess the transparency and level of preparedness of companies regarding the various points highlighted by the TCFD, but does not evaluate the content of the companies’ strategies.

The study’s findings reveal a highly uneven level of compliance among CAC 40 companies, regardless of their size or industry. However, it is noted that companies classified as high-impact (energy, transportation, agriculture, and construction) are, on average, closer to the TCFD’s recommendations, with an average compliance rate of 65% compared to 58% for the CAC 40 as a whole.

The two key categories with the lowest compliance rates are the “Strategy” category and the “Risk Management” category. In particular, the use of climate scenarios (including the 2°C scenario) is rare among CAC 40 companies, yet it is essential for assessing the medium- and long-term resilience of a company’s business.

In light of the climate challenge facing the economic and financial sectors today, Carbone 4 welcomes the key recommendations set forth in the TCFD’s final report, which some of the companies analyzed in this publication have already adopted to implement best practices in reporting.

Link to the publication: http://www.carbone4.com/files/wp-content/uploads/2017/07/Publication-Carbone-4-Reporting-CAC40-TCFD-1.pdf

Press Contact

Dorothée Coloby Phone: +33 (0)1 76 21 10 00 dorothee.coloby@carbone4.com

About Carbone 4

Founded by Alain Grandjean and Jean-Marc Jancovici, Carbone 4 is an independent consulting firm and a leader in climate strategy, energy transition, and climate change adaptation. Our team supports public and private sector stakeholders in the transition to a low-carbon economy that is resilient to climate change. www.carbone4.com