The OECD has published a policy paper, highlighting the challenges of assessing financial institutions’ progress on GHG emissions reduction targets.
Based on a sampled of 4,900 listed financial institutions globally, it found that only 19% reported Scope 3 GHG emission and only 23% reported Scope 1 and 2 emissions in 2024.
Only a third of the firms that disclosed their emissions obtained third party assurance on the information. In addition, one in five set emission reduction targets but only 27% of those set Scope 3 reduction targets and less than half (41%) committed to science-based targets. Moreover, only 8% of the overall sample have developed a climate-related transition plan.
The OECD recommends that policymakers:
- Monitor net zero commitments
- Adhere to international climate disclosure frameworks
- Create digital taxonomies and platforms for centralising firms’ climate information
- Phase in requirements for annual assurance attestations on disclosures
- Oversee the quality and credibility of firms’ disclosures
- Encourage firms to develop and disclose next-zero plans