(Bloomberg) -- Companies in industries with the biggest carbon footprints are failing to report how their climate profiles feed into financial risk, according to an analysis of 134 annual corporate reports by the Carbon Tracker Initiative.
The nonprofit, which looked at 2021 financial statements of companies in sectors spanning fossil fuels, mining, manufacturing, automotive and technology, found that almost all failed to show they considered the financial impact of material climate matters. Auditors are generally also ignoring the financial risks of emissions, according to the study published on Thursday.
“Our review is not of whether companies have set appropriate climate targets or even whether they are on track to achieve them, but instead whether companies have considered climate related risks to items in the financial statements,” Rob Schuwerk, Carbon Tracker’s US executive director and a co-author of the report, said. “We did not find any companies that showed comprehensive evidence of consideration in the financial statements.