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Enhancing Financial Transparency to Mitigate Climate Change: Toward a Climate Risks and Opportunities Reporting Index

Author

Listed:
  • Jeanne Amar

  • Samira Demaria

  • Sandra Rigot

    (Université Sorbonne Paris Nord, CEPN - Centre d'Economie de l'Université Paris Nord - Université Sorbonne Paris Nord)

Abstract

As climate change introduces more risks and uncertainties into the economy and the financial system, information failures limit the understanding of its financial impact on companies. In order to create the necessary conditions for transparency regarding these risks, the Financial Stability Board has set up an international working group, the Task Force on Climate-related Financial Disclosures (TCFD), with the aim of enhancing climate related corporate disclosures. On the basis of these recommendations and using a rigorous methodology, we develop an original composite index: the Climate Risks and Opportunities Reporting Index (CRORI). This reliable and reproducible index is the first indicator providing a standardized measure of the extent to which companies comply with the TCFD's recommendations. Then, in order to ensure the robustness of our index, we calculate the CRORI of CAC 40 companies over the period 2015-2018. Using various statistical techniques (Cronbach alpha, principal component analysis, etc.), we conclude that the CRORI methodology is satisfactory. Moreover, such an empirical analysis gives a first insight into the evolution of companies' compliance with the TCFD recommendations. Our results reveal a trend towards improved voluntary disclosure of climate-related information, particularly in the case of large companies and CO2-intensive companies.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jeanne Amar & Samira Demaria & Sandra Rigot, 2022. "Enhancing Financial Transparency to Mitigate Climate Change: Toward a Climate Risks and Opportunities Reporting Index," Post-Print halshs-03989444, HAL.
    • Handle: RePEc:hal:journl:halshs-03989444
    DOI: 10.1007/s10666-021-09800-7
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    Cited by:

    1. Jinli Wang & Tingting Wang & Qiyong Xiao & Ping Qin, 2026. "The Power of Colour: Does the Visual Communication of ESG Disclosure Promote Stock Liquidity?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 66(1), pages 722-737, March.
    2. Yunice Karina Tumewang & Collins G. Ntim & Faizul Haque, 2025. "Task Force on Climate‐Related Financial Disclosures: A Systematic Literature Review and Future Research Agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 34(8), pages 10033-10058, December.
    3. Jeanne, Amar & Demaria, Samira & Rigot, Sandra, 2023. "What are the drivers of corporates' climate transparency? Evidence from the S&P 1200 index," Ecological Economics, Elsevier, vol. 213(C).
    4. Paridhi & Neha Saini & Charu Shri, 2025. "Environmental, social, and governance reporting adoption factors for sustainable development at the country level," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(3), pages 8003-8042, March.
    5. Ana Isabel Dias & Pedro Pinheiro & Sónia Fernandes, 2026. "Gender diversity and climate disclosure: a tcfd perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 28(3), pages 6025-6047, March.

    More about this item

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F39 - International Economics - - International Finance - - - Other
    • G3 - Financial Economics - - Corporate Finance and Governance

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