The UK Endorsement Board research into connectivity
Sep 19, 2023
On September 19, 2023, the UK Endorsement Board (UKEB) published two reports arising from its research project on climate-related matters.
The first report Climate-Related Matters: Summary of Connectivity Research provides an overview of recent third-party research into connectivity challenges between TCFD disclosures (a proxy for the disclosures required by IFRS S2) and the financial statements.
The research revealed:
- There is an overall lack of connectivity between climate-related narrative disclosures and their associated disclosures in the financial statements.
- While there has been an increase in the occurrence of climate-related disclosures the quality of disclosures remains low.
- More transparency is required regarding climate-related estimates and judgements used to prepare financial statements.
The second report A Study in Connectivity: Analysis of 2022 UK Company Annual Reports provides a deep-dive analysis from an investor’s perspective of potential connectivity challenges and includes stakeholder feedback on possible causes.
Access the two reports on the UKEB website.