ADOPTION AND DETERMINANTS OF TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) REPORTING FRAMEWORKS BY AUSTRALIAN STOCK EXCHANGE (ASX) LISTED COMPANIES

Abstract

: This study investigates the determinants and extent of adoption of TCFD reporting frameworks by the listed corporate entities of the Australian Stock Exchange (ASX). Using content analysis on annual reports of 31 TCFD supporting ASX listed corporate entities, this study quantifies the extent of climate related risk disclosure by counting both, the number of words and pages. The investigation of the study found only 34 of over 2000 ASX listed corporate entities supported the framework till December 2020. The findings of the study claim that the intention of the reporting entities- integrated reporting with annual report and separate reporting as sustainability report, plays significant roles in adopting and disclosing TCFD reporting frameworks. More specifically, 70% of the supporting companies follow separate reporting strategy and disclose significantly more climate related financial risks than their counterparts.