AICPA & CIMA press release
Onset of Disclosure Rules and Rising Investor Expectations Spur Sharper Focus
Companies subject to European Union regulations on climate risk management and disclosure are significantly more likely to view climate risk as a top organisational concern – and a potential strategic opportunity – compared to their global peers, a study conducted in part by AICPA & CIMA found.
The global survey of 436 board members, C-suite executives and risk managers was developed by researchers from NC State University in the United States, the University of Bari Aldo Moro in Italy and the University of Economics Katowice in Poland, and fielded in late 2024 with the help of AICPA & CIMA. Titled “Managing the Risks of Climate Change: Insights into Business Practices,” its findings include:
- 49% of organisations with headquarters or operations in the European Union view climate risk as a top 10 risk concern for their organisation. Only 24% of non-EU organisations held a similar view.
- 57% of organisations with EU headquarters or operations perceived that investor expectations related to climate risk have increased in the past two years, compared to 28% for non-EU organisations.
- 49% of organisations with EU headquarters or operations have designed and implemented systematic processes to manage climate risk. That falls to only 19% of organisations that do not have operations in the EU.
- 49% of organisations with EU headquarters or operations have a management-level risk committee overseeing climate risks, while only 14% of non-EU organisations do.
A likely reason for the disparity in EU and non-EU organisations’ views on climate risk, the survey found, is the onset of European Sustainability Reporting Standards under the EU’s Corporate Sustainability Reporting Directive (CSRD).
“The higher level of investment by organisations with EU headquarters or operations in systematic processes, including management-level risks committees, may reflect greater understanding of the realities of climate-related risks as evidenced by their more likely inclusion of climate risk as a top 10 risk concern,” noted Mark Beasley, Alan T. Dickson Professor and director of the ERM Initiative at NC State.
One silver lining: a quarter of organisations with operations in the EU expressed a high or very high appreciation for strategic opportunities provided by effectively managing climate risks, compared to less than 10% of non-EU firms.
‘This research study demonstrates that managing climate-related risks is a high priority for EU companies, catalysed by reporting under the CSRD,” said Jeremy Osborn, AICPA & CIMA’s global head of sustainability. “Non-EU companies have some catching up to do and their EU counterparts provide a strong role model for the appropriate governance arrangements for managing such risks’.
Media contact
Martyna Makiel
External Relations Manager, Europe
Email: Martyna.Makiel@aicpa-cima.com
Tel: +48 662 800 455
About AICPA & CIMA, together as the Association of International Certified Professional Accountants
AICPA® & CIMA®, together as the Association of International Certified Professional Accountants (the Association), advance the global accounting and finance profession through our work on behalf of 597,000 AICPA and CIMA members, candidates and registrants in 188 countries and territories. Together, we are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license, the CGMA designation and specialised credentials, professional development and thought leadership. We build trust by empowering our members, candidates and registrants with the knowledge and opportunities to be leaders in broadening prosperity for a more inclusive, sustainable and resilient future.
The American Institute of CPAs® (AICPA®), the world’s largest member association representing the CPA profession, sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organisations and federal, state and local governments. It also develops and grades the Uniform CPA Examination and builds the pipeline of future talent for the public accounting profession.
The Chartered Institute of Management Accountants® (CIMA®) is the world’s leading and largest professional body of management accountants. CIMA works closely with employers and sponsors leading-edge research, constantly updating its professional qualification and professional experience requirements to ensure it remains the employer’s choice when recruiting financially trained business leaders.
