Stockholm (NordSIP) – According to the annual report of the Nordic Engagement Cooperation (NEC), awareness of improved reporting on climate change is on the rise, particularly with regards to the reporting framework of the Taskforce on Climate-related Financial Disclosure (TCFD).
The NEC is a collaborative engagement network between Folksam Group, Ilmarinen, KLP and PFA Pension. The four Nordic institutional investors cooperate closely with engagement services provider Sustainalytics.
“The TCFD reporting framework helps companies to make the link between climate change risks and the financial impacts to their business, and it also helps companies to improve their processes and become more climate-resilient,” says Niina Arkko, Responsible Investment Analyst at Ilmarinen.
According to the report, a new engagement project focusing on climate change challenges and disclosure was launched in 2019 in parallel with existing norms-based engagement efforts, which are the core priority of the network.
It was in the context of this new initiative that the NEC came to inquire four multinational companies in the meat and dairy sectors about their awareness and integration of the TCFD reporting framework. The companies were chosen because they typically have high exposure both to physical and transitional risks from climate change and represent a significant source of greenhouse gas emissions, according to the NEC. Of the four companies, three have so far entered into constructive dialogue, according to NEC.
Despite their improved reporting on climate change and awareness of the TCFD framework, most of the companies are only in the very early stages of actions to reduce overall greenhouse gas emissions. According to the NEC report, significant action is still required to reach the TCFD standard on climate reporting and