LONDON, (Reuters) – Only 1% of the 5,000 largest companies in the world are reporting substantial climate risk disclosures, with more than 50% not doing so, according to ESG research by Arabesque and investment manager Arabesque.

Arabesque only analysed 1.2% — the majority of large listed companies — on each of 11 recommendations by the Task Force on Climate-Related Financial Disclosures.

It added that fifty-four percent top companies did not disclose.

The Financial Stability Board established the TCFD. This group includes regulators, central bank officials and treasury representatives from G20 countries. They made 2017 recommendations about how companies should disclose potential risks and opportunities arising from climate change.

As U.N. Climate talks concluded on Saturday, investors are increasingly paying attention to companies’ exposures to climate change. This deal foresees fossil fuels being the main driver of global warming.

Arabesque President Daniel Klier stated, “We must act on the promises.”

“TCFD” is what everyone is focused on… the quality of disclosure must improve significantly.

Health and technology services companies were the worst offenders, with more than 70% making no disclosures, Arabesque’s analysis showed, while energy companies were among those giving the most information.

Klier explained that industries facing the most scrutiny from investors include those trying to do better jobs.

Market regulators in countries such as the United Kingdom, Brazil, Japan, New Zealand and Singapore have started to use the TCFD recommendations for compulsory disclosures.

The TCFD stated that last month, only around half of companies reported climate-related opportunities and risks in any form. On average, this covers about a third the recommended disclosures.

More than 1,600 businesses were included in the TCFD 2021 review.

According to the Coalition for Climate Resilient Investment, a group comprising institutional investors as well as governments holding more than $20 trillion of assets, the lack of tools that can quantify assets’ exposure to climate risk is contributing to the “chronic underinvestment” in climate resilience.