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This study aims to examine and find the gaps in climate-related disclosures both from the international and Indian points of view. It determines the gaps in disclosures based on the Task-force on climate-related financial disclosures, which analyses the organizations based on their climate-related disclosures. A comparison between the quality of disclosures between two sectors, banking and energy has been done. The need for this study is to understand how TCFD recommendations can help us in understanding the climate-related risks that any company may face and how these risks affect the decisions made by the stakeholders.
This data was analyzed using content analysis and a thorough statistical analysis was done to understand the gaps in disclosures and the quality of disclosure over time. The study reveals that international companies generally have stronger overall disclosures compared to Indian companies in the banking and energy sectors. The disclosures of international companies are above average and getting better over time, while those of Indian companies were average in FY22 and below average in FY21, underscoring the need for better reporting practices. The latter part of the study also suggests how Indian companies can improve their disclosures and be more rigid with their disclosing information that helps the stakeholders be in constant evaluation of the company. It also discusses the lack of information about the metrics and targets and strategy of the climate-related disclosures based on the TCFD Recommendations.
Keywords: Climate-related disclosures, Climate risks and opportunities, TCFD recommendations, Content analysis, Energy sector, Banking sector.
