Our annual research reveals that investors are getting clearer sight of how Australian listed companies factor climate change into their operations, with a growing number of ASX200 companies integrating climate change considerations into their financial statements and pricing carbon to test business resilience.

The majority of the ASX200 is ready for mandatory climate reporting, with nearly 70% now reporting against the TCFD. 80% of market capitalisation is covered by net zero commitments, but detail, depth, comparability and credibility gaps remain.

Australia’s listed companies are rapidly increasing their commitments towards a low-carbon economy, with 70% of ASX200 market capitalisation now covered by net zero commitments. However, investors need more detail to be confident in their long-term planning.