Nearly 75% of large and medium-sized companies listed on the world’s stock markets don’t recognise the financial risk of climate change in their annual reports, according to KPMG.

A survey by the accountancy firm found that only 4% of those that acknowledged climate change risk went so far as to analyse the potential business value at risk.

Companies in the forestry, chemicals and mining sectors are the most likely to report on climate change risk.

Those in the healthcare, transport and leisure, and retail are the less-likely sectors to make such reports.

Breach of duty

José Luis Blasco, Global Head of Sustainability Services at KPMG, said: “Our survey shows that, even among the world’s largest companies, very few are providing investors with adequate indications of value at risk from climate change.

“Pressure on firms to up their game on disclosure is growing by the day.

“Some investors are already taking a hard-line approach to demanding disclosure: some countries are considering regulation to mandate it; and some financial regulators have warned that failure to identify and manage climate risk is a breach of a board’s fiduciary duty.”

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