Flying Blind: In a Holding Pattern

Open Resource

Year Published

2024

Contributing Organizations

Carbon Tracker

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Transition Finance

Topic 2

Transition Planning & Implementation Capabilities

Target Audience

Asset Managers

Asset Owners

Banks

Financial Services Providers

Insurers

Relevant Geography

Global

Open Resource

Resource Description

This third report in the Flying Blind series—In a Holding Pattern (Overview)—analyzes how well companies and auditors reflect climate and energy transition impacts in financial statements. It summarizes key findings and themes from Tracker Group assessments and provides insights for investors, regulators, policymakers, and standard-setters.

Why This Matters

Financial statements that omit climate and transition risks may mislead investors and hinder effective capital allocation. As climate impacts intensify and regulations evolve, transparency is essential to ensure management accountability, reduce investor risk, and support the global shift away from fossil fuel dependence.

Key Insights

Many companies and auditors still fail to reflect material climate and energy transition risks in financial statements
Such risks can already affect profitability, asset values, and liabilities
Innovation, policy shifts, and changing demand are accelerating transition pressures
Disclosure gaps limit investor insight into future losses or stranded assets
The report uses the Climate Accounting and Audit Assessment to analyze progress and suggests actions for market actors to improve transparency

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