Bridging the Governance Gap in Climate Disclosure
Tick-Box or Transformation?
Net-zero commitments are widespread, but the credibility of those commitments rests on how well they are governed and disclosed. Without clear oversight and robust reporting, many plans fall short — not because of bad intent, but because of poor structure.
1. Governance: The Weakest Link
While the TCFD framework has seen broad uptake, only 58% of companies report against five or more of its 11 recommendations — and just 4% report on all. This leaves most organisations underprepared for investor scrutiny[^1].
Furthermore, only around half of reporting companies confirm board-level oversight of climate risks[^2], and just 11% incorporate scenario analysis or climate resilience testing into their reporting[^3].
2. Disclosure Remains Fragmented
In practice, many disclosures are spread across different documents — 50% appear in annual reports, 25% in sustainability reports, and the remainder in ad hoc releases[^4]. This weakens narrative clarity and raises concerns about greenwash and auditability.
3. ISSB: The New Global Standard
The new ISSB Standards (IFRS S1 & S2) are set to become the global benchmark for climate-related financial disclosures. These will apply to over 110,000 companies worldwide, with more than half of jurisdictions signalling plans to align with them[^5][^6].
Despite this progress, early implementation shows that many companies continue to report outside their main financial statements, missing opportunities for integration[^7].
4. Why This Matters
Companies without strong governance and disclosure face material risks:
Reputational damage
Limited investor confidence
Inability to secure transition finance
Robust climate governance ensures that transition plans are not just strategic aspirations, but auditable business priorities.
Conclusion
The path to net zero must be walked with clarity and accountability. At Resilient Horizons, we help leaders bring integrity to their climate plans — with frameworks that stand up to investor, public, and regulator scrutiny.
Ready to get governance right?
Footnotes
[^1]: TCFD 2023 Status Report: Only 4% disclose all 11 recommendations.
https://www.fsb.org/wp-content/uploads/P131023-1.pdf
[^2]: Only 50% of companies report board oversight of climate issues.
https://corpgov.law.harvard.edu/2023/12/20/climate-related-disclosures-by-u-s-based-and-other-companies-stats-from-the-new-ifrs-foundation-progress-report/
[^3]: Only 11% perform climate scenario analysis.
https://www.esgtoday.com/tcfd-update-finds-sharp-increase-in-company-disclosure-of-climate-risks-and-opportunities/
[^4]: Durham University: Fragmentation of climate disclosures across reports.
https://www.durham.ac.uk/news-events/latest-news/2024/01/climate-disclosures-corporations-underprepared-for-tighter-new-standards/
[^5]: IFRS ISSB: Global progress report on IFRS S1 and S2 adoption.
https://www.ifrs.org/content/dam/ifrs/supporting-implementation/issb-standards/progress-climate-related-disclosures-2024.pdf
[^6]: ISSB expected to apply to 110,000–130,000 companies globally.
https://getgoodlab.com/resources/issb-reporting-standards/
[^7]: Many companies still publishing ISSB-aligned data outside audited financial reports.
https://www.fsb-tcfd.org/about/