The Paris financial centre provides an overview of the level of maturity of companies in assessing and managing climate risks.

Drawing on the first sustainability statements as well as interviews with companies, the Institut de la Finance Durable analyses the maturity of companies in the assessment and management of climate risks, highlighting both the progress achieved and the improvements still needed.

A key element of the European Green Deal, the Corporate Sustainability Reporting Directive (CSRD) aims to harmonise corporate sustainability reporting and improve access to published ESG data. Since its entry into force on 1 January 2024, companies in the ‘first-wave’ have been publishing sustainability statements in accordance with the framework of the European Sustainability Reporting Standards (ESRS), which aim to establish a common language, shared standards and a reference framework to enhance the quality of published information and to promote greater transparency. The first sustainability statements published constitute a substantial source of information, offering valuable insights into companies’ practices regarding the analysis of their climate risks and the presentation of their strategies to address them.

This report aims to assess the level of maturity in the assessment and management of climate risks – both physical and transition risks – based on these CSRD reports, complemented by more in-depth interviews with companies. It draws on eight studies covering an average of 178 CSRD reports each, across twelve sectors, as well as interviews with 26 companies. The analysis shows that the assessment and management of climate risks are becoming more widespread and that companies are gradually strengthening their internal procedures and expertise in these areas. However, further progress is still needed to improve the robustness of assessments and the structuring of strategies, particularly with regard to adaptation action plans.

The findings of this first IFD report will inform a second document – scheduled for the end of the first half of 2026 – which will present the analytical approaches, tools and available databases to help stakeholders integrate climate risk assessments into their investment and financing decisions.