KPMG "ESG Emerges as a Key Issue for Executives... Urgent Need to Develop Management Strategies"

Publication of Global Survey Report on Sustainability
56% of Top 250 Global Companies "Report Climate Change Risks"

[Asia Economy Reporter Minji Lee] As ESG (Environmental, Social, Governance) is recognized as an important element of corporate reporting, global companies are reflecting climate change as a potential risk to their business.

According to the report "Towards Net Zero" released on the 11th by accounting and consulting firm KPMG, 56% of the world's top 250 companies by revenue reflected climate change as a potential risk to their business in corporate reporting. KPMG presented 12 criteria classified into climate risk governance, awareness, impact, and reporting on the transition to carbon neutrality (Net Zero), and analyzed the corporate reporting status of the G250, the top 250 companies by revenue selected by Fortune.

The analysis showed that since 2017, major countries worldwide have been incorporating climate change into financial and integrated reports, with companies in France (94%), Japan (71%), and the United States (54%) showing high reflection rates. By industry, oil & gas (81%) and distribution, logistics, and consumer goods (70%) actively reflect climate change risks in corporate reporting, while automotive (38%) and pharmaceutical, bio, and healthcare (19%) companies were found to be lagging.

44% of companies reported that climate change response is the responsibility of the board of directors. Notably, all Japanese companies within the G250 regard climate change response as the board's responsibility, and 61% of electronics, information and communication, and media companies reported that climate change response is the board's responsibility, a higher level compared to other industries.

One in three (33%) CEOs of G250 companies mentioned climate change in corporate reporting. Regarding this, KPMG explained, "This indicates that climate change response has emerged as a key issue for top executives of global companies."

22% of G250 companies disclose climate risk analysis based on global warming scenarios in their corporate reporting, with Japanese companies approaching 50%. The report interpreted this as influenced by the Japanese government's active support for the private sector consortium related to the TCFD (Task Force on Climate-related Financial Disclosures) guidelines and the Ministry of the Environment's practical guidelines for scenario analysis in Japan.

Among G250 companies, 17% report strategies to achieve decarbonization goals, with no Chinese companies included. Although many companies set carbon reduction targets, this indicates that concrete strategies to achieve these goals are insufficient.

This content was produced with the assistance of AI translation services.