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Understanding, mapping and reporting of climate-related risks among listed firms in Sweden

Author

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  • Fredrik N. G. Andersson
  • Susanne Arvidsson

Abstract

We study the mapping and reporting of climate-related risks among firms listed on the NasdaqOMX stock exchange in Stockholm in four goods-producing industries. Our study contains two parts: (i) a study of the firms’ external communication through their annual reports, sustainability reports and webpages, and (ii) a follow-up survey of the top management team. The survey contains quantitative questions and free text answers, which provide additional insights into the mapping and risk-handling of climate-related risks among the firms. We find that firms are likely to engage in some form of mapping and reporting of climate-related risks, but there are variations among the firms. Furthermore, the management of climate-related risks appears to be a residual issue for most firms with little active engagement from the management team or board of directors.Key policy insights Public policies and private initiatives, such as the EU’s Non-Financial Reporting Directive/Corporate Sustainability Reporting Directive (NFRD/CSRD), the EU Taxonomy for Sustainable Activities, and Task Force on Climate-related Financial Disclosure (TCFD), may redirect and accelerate investments promoting a low-carbon and climate-resilient economy.Although most firms map and report climate-related risks, the understanding of the nature of these risks, of underlying problems, and of what a climate transition implies, varies across firms and industries.The success of the EU’s NFRD/CSRD, the EU Taxonomy for Sustainable Activities, and TCFD requires an improved understanding of climate-related risks among the firms and a more proactive engagement of the management team.Policymakers must provide firms with additional guidance aimed at improving their understanding of climate-related risks and thus their capacity to manage these risks.Firms need to, individually and jointly, revise their theoretical and empirical understandings of climate-risk management and especially the role climate-related risks play in the new policy setting.The TCFD has an important role to play, but as a voluntary initiative, it is insufficient to generate change among all firms.

Suggested Citation

  • Fredrik N. G. Andersson & Susanne Arvidsson, 2023. "Understanding, mapping and reporting of climate-related risks among listed firms in Sweden," Climate Policy, Taylor & Francis Journals, vol. 23(8), pages 945-958, September.
    • Handle: RePEc:taf:tcpoxx:v:23:y:2023:i:8:p:945-958
    DOI: 10.1080/14693062.2022.2116383
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    Cited by:

    1. Federica Tonnarello & Carlo Vermiglio & Carlo Migliardo & Valeria Naciti, 2025. "The Impact of EU Taxonomy for Sustainable Activities on European Utilities' Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 34(3), pages 2848-2862, March.
    2. K. B. Mantlana & M. Ndiitwani & S. Ndhleve, 2024. "A perspective on the significance of reporting climate change adaptation information to the united nations framework convention on climate change," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 24(2), pages 309-324, September.
    3. Andersson, Fredrik N G & Arvidsson, Susanne, 2024. "The Firms’ Integration Process of the Twin Pillars of Environmental Sustainability: Climate Change and Biodiversity Loss," Working Papers 2024:2, Lund University, Department of Economics.
    4. Kumari, Vineeta & Pandey, Dharen Kumar, 2025. "Market reactions to the central bank’s mandate on climate-related financial risk disclosures: Evidence from the Indian banking sector," Finance Research Letters, Elsevier, vol. 84(C).

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