Review of net zero disclosures: Challenges and opportunities
Climate change presents increased risks to how Canadian companies operate. An increasing number of companies are disclosing climate-action plans to demonstrate their involvement toward mitigating these risks.
To better understand the nature and quality of net zero disclosures in Canada, Deloitte and CPA Canada examined the net-zero disclosures of 20 publicly listed companies on the Toronto Stock Exchange (TSX) across several industries.
This report highlights key findings from our disclosure study and areas for improvement. Our research revealed difficulty in comparing net zero targets among companies and evaluating progress towards meeting them. In addition, action plans included varying levels of detail on how net zero goals will be achieved. There is a need for additional guidance to enable clear, consistent and comparable disclosures around net zero targets.
This research is intended to enhance discussion around this important area and identify ways in which companies could improve disclosure of their net zero targets and transition plans.