Companies weigh their effects on the climate, as investors and regulators demand it

Climate change is not only on the agenda of do-good or purpose-led firms. Investors and regulators are now increasingly questioning how sustainable a company is, and what risks it poses to the environment. Learn about why it’s important and what’s happening.
Curiousbrand Team
April 19, 2023

Why it matters

The UN IPCC’s report issued a ‘code red’ for humanity. The report says humans are ‘unequivocally’ causing global warming, and the intensifying effects will get even worse.

That being the case, climate change is no longer optional for companies. According to the Sustainability Accounting Standards Board (SASB), climate risk significantly affects 68 of the 77 industries, which is equal to 89% of the market value of the S&P Global 1200.

This means it’s likely that investors will put environmental credentials at focus as a risk-limiting factor that may bring a broader idea of what a good business to buy from, and marketers will need to respond.

What’s happening

  • While climate impact is increasingly expected from companies, there are very few standards.
  • Companies are also trying to show their impact by providing information ranging from the greenhouse gas impact of a can of soda to company-wide figures.
  • The accuracy of that information will be crucial if climate impact becomes a part of publicly listed companies’ legal duties to disclose impact.
  • Auditing services that evaluate a company’s impact are likely to proliferate besides the already booming sustainable finance sector.

Read more @warc