Bloomberg, the world’s leading financial and business information company, recently conducted a survey of more than 100 senior executives from financial services companies and corporations around the world.

The results indicate that companies are aligned on the goal of incorporating climate risk into their broader risk management frameworks for much more than regulatory compliance, but lack consensus on how to effectively manage and report on these risks. Most executives indicated that their companies have begun to assess climate risk, but within that group, 37% are in the early stages of planning on how to incorporate climate risk into models and governance, and only 5% are in the advanced stage of having comprehensive data and multi-scenario analysis based on a variety of climate variables such as carbon emissions, geolocation data and extreme weather events. When asked what is driving companies’ climate risk considerations in their investment process, regulatory and disclosure requirements ranked first with 25% of respondents. Regarding regulators, 21% of respondents said they are the main intended audience for their climate risk analysis.

The study concludes that there is still some way to go to incorporate climate into risk management frameworks as there is no consensus on how to assess and report on climate risk.