GSIA Releases Sustainable Investor Poll on TCFD Implementation
Climate risks are not priced into market valuations, and corporate climate disclosures are insufficient: GSIA pollDecember 12, 2019 – Today, the Global Sustainable Investment Alliance (GSIA) released its Sustainable Investor Poll on TCFD Implementation – a survey of 272 investment professionals who practice sustainable investing. The survey included respondents based in Australasia, Canada, Europe, Japan, United Kingdom and the United States.
The vast majority of respondents, 87%, said they do not believe that markets are consistently and correctly pricing climate risks into company and sector valuations. Only 2% said they believe these risks are priced in, while 11% said they are unsure.
A majority of 59% of respondents said they are unsatisfied with publicly-traded companies' climate disclosures. This negative sentiment is particularly strong in the US, and within service providers and asset managers. Not a single respondent reported being “very satisfied” with corporate disclosures on climate change.
Globally, 92% of respondents agreed that the TCFD recommendations are helpful and 92% agreed that they will help investors to limit the global average temperature rise to less than 2°C.
In total, 34% of survey respondents have already incorporated TCFD disclosures into their investment analysis, led by respondents in the UK and Australasia. A further 26% of respondents plan to incorporate the TCFD recommendations into their analysis in the near-term.
The percentage of survey respondents who are already reporting in line with the TCFD recommendations is low (16%), and lags behind the proportion who are incorporating TCFD into their investment analysis. Stated intentions to report in line with the TCFD recommendations indicate positive momentum, with 19% of respondents saying they plan to do TCFD reporting in 2020 and 28% exploring this option.
View the full report here.
About The Global Sustainable Investment Alliance
The Global Sustainable Investment Alliance (GSIA) is a collaboration of membership-based sustainable investment organizations around the world. GSIA's mission is to deepen the impact and visibility of sustainable investment organizations at the global level. Its vision is a world where sustainable investment is integrated into financial systems and the investment chain and where all regions of the world have coverage by vigorous membership-based institutions that represent and advance the sustainable investment community. For more information, visit gsi-alliance.org.