Evaluating corporate climate risk assessment results: Lessons learned from Taiwan’s top 100 enterprises
In recent years, driven by the Task Force on Climate-related Financial Disclosures (TCFD), climate risk disclosure has developed as a key concrete action among the business community to address climate change. However, such disclosures are often incomplete or misleading, and improvements are needed...
Saved in:
| Main Authors: | , , , , , , , , , , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2024-01-01
|
| Series: | Climate Risk Management |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2212096324000858 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850103882367107072 |
|---|---|
| author | Chia-Chi Lee Shih-Yun Kuo Shih-Yu Lee Huang-Hsiung Hsu Kuei-Tien Chou Tung-Li Mo Chung-Pei Pien Ya-Ting Kuo En-Yu Chang Kuan-Chun Huang Ling-Ju Hsu Yi-Meng Chao Hui-Tsen Hsiao Ming-Cheng Chang |
| author_facet | Chia-Chi Lee Shih-Yun Kuo Shih-Yu Lee Huang-Hsiung Hsu Kuei-Tien Chou Tung-Li Mo Chung-Pei Pien Ya-Ting Kuo En-Yu Chang Kuan-Chun Huang Ling-Ju Hsu Yi-Meng Chao Hui-Tsen Hsiao Ming-Cheng Chang |
| author_sort | Chia-Chi Lee |
| collection | DOAJ |
| description | In recent years, driven by the Task Force on Climate-related Financial Disclosures (TCFD), climate risk disclosure has developed as a key concrete action among the business community to address climate change. However, such disclosures are often incomplete or misleading, and improvements are needed both in terms of disclosure quantity and quality. One of the fundamental problems is that it is difficult to evaluate the results of corporate climate risk assessment. This study constructs the Evaluation of Corporate Climate Risk Assessment Results (ECCRAR) scheme. It analyzes the sustainability reports and TCFD reports of Taiwan’s 100 largest firms by total market capitalization. The findings reveal significant variation in their physical and transition risk assessment performance. Issues identified include inappropriate scenario settings, assessment tools, and sources of information, as well as flawed or unclear risk assessments. Additionally, there is an overly conservative use of assessment tools, with a heavy reliance on free resources and official graphics (such as hazard potential maps and inundation maps), with extremely low use of transition risk assessment tools and graphics. We also recommend increasing the use of fixed-temperature warming scenarios. The research results provide a useful reference to corporate and government decision makers, and also raise the analytical scheme and new empirical cases for further research. |
| format | Article |
| id | doaj-art-2bcf7bc5b8d041b0a4ba6a11c42bd901 |
| institution | DOAJ |
| issn | 2212-0963 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Climate Risk Management |
| spelling | doaj-art-2bcf7bc5b8d041b0a4ba6a11c42bd9012025-08-20T02:39:27ZengElsevierClimate Risk Management2212-09632024-01-014610066810.1016/j.crm.2024.100668Evaluating corporate climate risk assessment results: Lessons learned from Taiwan’s top 100 enterprisesChia-Chi Lee0Shih-Yun Kuo1Shih-Yu Lee2Huang-Hsiung Hsu3Kuei-Tien Chou4Tung-Li Mo5Chung-Pei Pien6Ya-Ting Kuo7En-Yu Chang8Kuan-Chun Huang9Ling-Ju Hsu10Yi-Meng Chao11Hui-Tsen Hsiao12Ming-Cheng Chang13Research Center for Environmental Changes, Academia Sinica, Taipei, Taiwan; Corresponding author.Research Center for Environmental Changes, Academia Sinica, Taipei, TaiwanResearch Center for Environmental Changes, Academia Sinica, Taipei, TaiwanResearch Center for Environmental Changes, Academia Sinica, Taipei, TaiwanResearch Center for Environmental Changes, Academia Sinica, Taipei, Taiwan; Risk Society and Policy Research Center, National Taiwan University, Taipei, Taiwan; Graduate Institute of National Development, National Taiwan University, Taipei, TaiwanTaiwan Business Council for Sustainable Development, Taipei, TaiwanInternational College of Innovation, National Chengchi University, Taipei, TaiwanDepartment of Marketing and Distribution Management, Asia Eastern University of Science and Technology, Taipei, TaiwanResearch Center for Environmental Changes, Academia Sinica, Taipei, TaiwanResearch Center for Environmental Changes, Academia Sinica, Taipei, Taiwan; Taiwan Business Council for Sustainable Development, Taipei, TaiwanRisk Society and Policy Research Center, National Taiwan University, Taipei, TaiwanRisk Society and Policy Research Center, National Taiwan University, Taipei, TaiwanRisk Society and Policy Research Center, National Taiwan University, Taipei, TaiwanCTCI Group, Taipei, TaiwanIn recent years, driven by the Task Force on Climate-related Financial Disclosures (TCFD), climate risk disclosure has developed as a key concrete action among the business community to address climate change. However, such disclosures are often incomplete or misleading, and improvements are needed both in terms of disclosure quantity and quality. One of the fundamental problems is that it is difficult to evaluate the results of corporate climate risk assessment. This study constructs the Evaluation of Corporate Climate Risk Assessment Results (ECCRAR) scheme. It analyzes the sustainability reports and TCFD reports of Taiwan’s 100 largest firms by total market capitalization. The findings reveal significant variation in their physical and transition risk assessment performance. Issues identified include inappropriate scenario settings, assessment tools, and sources of information, as well as flawed or unclear risk assessments. Additionally, there is an overly conservative use of assessment tools, with a heavy reliance on free resources and official graphics (such as hazard potential maps and inundation maps), with extremely low use of transition risk assessment tools and graphics. We also recommend increasing the use of fixed-temperature warming scenarios. The research results provide a useful reference to corporate and government decision makers, and also raise the analytical scheme and new empirical cases for further research.http://www.sciencedirect.com/science/article/pii/S2212096324000858Climate risk disclosureClimate risk assessmentSustainability reportingScenario analysisTCFDPhysical risk |
| spellingShingle | Chia-Chi Lee Shih-Yun Kuo Shih-Yu Lee Huang-Hsiung Hsu Kuei-Tien Chou Tung-Li Mo Chung-Pei Pien Ya-Ting Kuo En-Yu Chang Kuan-Chun Huang Ling-Ju Hsu Yi-Meng Chao Hui-Tsen Hsiao Ming-Cheng Chang Evaluating corporate climate risk assessment results: Lessons learned from Taiwan’s top 100 enterprises Climate Risk Management Climate risk disclosure Climate risk assessment Sustainability reporting Scenario analysis TCFD Physical risk |
| title | Evaluating corporate climate risk assessment results: Lessons learned from Taiwan’s top 100 enterprises |
| title_full | Evaluating corporate climate risk assessment results: Lessons learned from Taiwan’s top 100 enterprises |
| title_fullStr | Evaluating corporate climate risk assessment results: Lessons learned from Taiwan’s top 100 enterprises |
| title_full_unstemmed | Evaluating corporate climate risk assessment results: Lessons learned from Taiwan’s top 100 enterprises |
| title_short | Evaluating corporate climate risk assessment results: Lessons learned from Taiwan’s top 100 enterprises |
| title_sort | evaluating corporate climate risk assessment results lessons learned from taiwan s top 100 enterprises |
| topic | Climate risk disclosure Climate risk assessment Sustainability reporting Scenario analysis TCFD Physical risk |
| url | http://www.sciencedirect.com/science/article/pii/S2212096324000858 |
| work_keys_str_mv | AT chiachilee evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT shihyunkuo evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT shihyulee evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT huanghsiunghsu evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT kueitienchou evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT tunglimo evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT chungpeipien evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT yatingkuo evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT enyuchang evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT kuanchunhuang evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT lingjuhsu evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT yimengchao evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT huitsenhsiao evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises AT mingchengchang evaluatingcorporateclimateriskassessmentresultslessonslearnedfromtaiwanstop100enterprises |