Climate disclosures rise but transition is slow

PricewaterhouseCoopers said about 69 percent of Hong Kong-listed companies it tracked have disclosed the significant impacts of climate risks.

This came as the Task Force on Climate-related Financial Disclosures said in its latest report that only 4 percent of the world's companies revealed its recommended 11 disclosures.

PwC's study of ESG reports published in 2022 by 300 firms from 12 industries and found that only 29 percent of them have formulated plans to transform to a low-carbon economy.

Hong Kong Exchanges and Clearing's (0388) proposal to require listed companies to disclose climate-related information in their ESG reports will come into effect in 2024.

PwC is of the view that the administration had measures to assist enterprises in low-carbon transformation and is optimistic that they would meet the new disclosure standards.

Meanwhile, the TFCD, an advisory body set up by the G20, said that 58 percent of firms disclosed in line with at least five of the 11 disclosures in 2022, up from 18 percent in 2020.

While levels of disclosure are increasing, they still fall short of the 11 disclosures, it said.