A significant number of businesses are failing to take adequate action on climate change, posing a serious risk to global environmental goals.
According to the 2024 EY Global Climate Action Barometer, nearly 41% of businesses worldwide have plans in place to manage climate risks.
This lack of action is particularly concerning given the urgent need to meet the goals of the Paris Agreement, including reducing greenhouse gas emissions and limiting global temperature rise.
The Barometer, which surveys over 1,400 companies across 51 countries, shows that while more businesses are providing information on climate-related risks, the quality of this disclosure remains alarmingly low.
Despite a slight improvement in the coverage of disclosures, with 94% of companies reporting on at least some of the 11 recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), only 54% of companies are providing detailed, actionable data.
The report highlights a worrying trend, particularly among the world’s largest emitters.
In China, just 8% of companies have a transition plan in place, while in the US, the figure is only 32%.
In contrast, European countries such as the UK show a higher adoption rate, with 66% of businesses having transition plans.
Furthermore, businesses are also falling short in terms of financial commitment.
Only 4% of companies have disclosed their operational expenditure related to climate action, and just 17% have reported capital expenditure.
