GARP SCR Chapter 3: Aspirant asked questions

Question based on Chapter 03

Question #1:

 Questions asked by LinkedIn community member Abhijeet Bhosale

According to the TCFD 2022 Status Report, over 3,800 organizations have become supporters of the TCFD Recommendations, including over 1,500 financial institutions responsible for assets of $217 trillion. Based on the fiscal year 2021 reporting of over 1,400 companies, 80% of companies disclosed in line with at least one of the 11 recommended disclosures; however, only 4% disclosed in line with all 11 recommended disclosures and only around 40% disclosed in line with at least five. Europe remains the leading region for disclosure, and reporting on climate-related risks and opportunities is higher than any other recommended disclosure. Despite this, the resilience of companies' strategies under different climate-related scenarios continues to have the lowest level of disclosure, while governance remains the least disclosed recommendation. - Could not understand which aspect is less reported.? 

Answer:  
As per TCFD's recommended framework disclosure of climate risk consists of 4 components: GOVERNANCE, STRATEGY, Risk management and Metrics & Targets. The above statement mentions that inspite of  TCFD's recommended framework is being widely used, it is observed that the resilience strategies ("STRATEGY" component of the framework)  are disclosed by the companies but have minimum information/details mentioned as the part of disclosed information while "GOVERNANCE" is not disclosed by many companies. 
The probable reason of why this is being done is because the companies may not want to disclose their strategies and governance structure to their competitors. 

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