The group’s annual climate disclosure report revealed that 49 of the ASX 200 had made net-zero commitments for 2050 or earlier as at the end of March 2021, up from 14 companies in the prior corresponding period.
The 49 companies signed up to net zero was equal to around half of the ASX 200 market capitalisation, or over $1 trillion, ACSI said.
The report also revealed that the majority of ASX 200 companies were expected to be using the Task Force on Climate-Related Financial Disclosures framework by next year, with 80 having adopted the framework since its inception, 18 having adopted it in the last year and a further 17 reviewing the potential use of the framework.
“There has been a significant uplift in the management and disclosure of climate-related risks and opportunities in some of Australia’s largest companies over the past year,” ACSI chief executive Louise Davidson said.
“We expect this trend to accelerate over the coming reporting season as companies strengthen targets and revise their net zero commitments in light of the recent IPCC Report findings.”
In addition, the report found 66 companies had set short-term emission targets to 2025, 54 had set medium-term targets between 2026 and 2039, and 37 had set longer-term targets between 2040 and 2050.
The number of companies disclosing the outlook for their business from an increase in global temperatures also increased 90 per cent to 62 in the 2020 financial year, up from 32 in the 2019 year.
“There is an opportunity for more companies to disclose how their scenario analysis informs their long-term corporate strategies,” she said. “Many Australian boards are clearly integrating climate risk into their strategic decision making by articulating long-term emission reductions targets, and investment in technologies aimed at decarbonising business operations.
“Embedding pathways to net zero in long-term corporate planning will help close the gap between ambition and delivery of emissions reductions targets. This helps investors understand and manage the risks for the benefit of super fund beneficiaries.”
