Majority of firms not planning for climate change risk, study finds

illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:

🗞️ Driving the news: A new EY 2024 Global Climate Action Barometer reveals that only 41% of businesses worldwide have transition plans to address climate change risks
• Alarmingly, 38% of firms report no intention to adopt such plans, with major emitters like the U.S. (32%) and China (8%) lagging significantly behind Europe (59%) and the U.K. (66%)
• Financial commitments to implement these plans remain minimal, with just 4% disclosing operational expenditure and 17% reporting capital expenditure

🔭 The context: Transition plans are critical for businesses to mitigate risks associated with climate change, yet adoption rates remain low, particularly in regions with less stringent regulatory frameworks
• EY's analysis of over 1,400 firms across 51 countries highlights the role of regulation in driving corporate action, particularly in Europe
• Despite the urgency, most businesses have not integrated climate considerations into their strategic and operational planning

🌍 Why it matters for the planet: Businesses are vital players in the global transition to net zero, but a lack of preparedness and financial commitment threatens to slow progress
• Delayed action risks exacerbating climate-related damage and missing opportunities in emerging green markets

⏭️ What's next: EY experts urge companies to view climate action as a strategic opportunity, integrating climate risk into supply chain and organizational strategies
• Policymakers must collaborate with businesses to create supportive regulatory environments that accelerate the adoption of transition plans

💬 One quote: “Now is the time to make all the right investments and position yourself for the next few decades, but only a few companies are seeing that at the moment,” said Dr. Matthew Bell, EY's global climate change and sustainability leader.

📈 One stat: Just 8% of businesses in China and 32% in the U.S. have adopted climate change mitigation plans, compared to 66% in the U.K.

Click for more news covering the latest on corporate sustainability