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Climate-related resources

Climate change continues to be an area of specific focus for in­vestors, reg­u­lat­ors and other busi­ness stake­hold­ers who are increasingly de­mand­ing better dis­clos­ures on climate change matters and chal­len­ging com­pan­ies who are not factor­ing the effects of climate change into their crit­ical ac­count­ing judge­ments. Investors want:

  • to see how the impacts of climate change have been reflected in the measurement and recognition of assets and liabilities;
  • more transparency on the assumptions used and sensitivities to those assumptions; and
  • to be confident that there is consistency between climate scenarios included in the narrative in the front end of the annual report and the numbers disclosed in the financial statements.

Recently investors have set out their expectations for Paris-aligned accounts - accounts that adequately reflect the impact of getting to net zero emissions by 2050 for assets, liabilities, profits and losses. Additionally the UK Government has announced the intention to make Task Force on Climate-related Financial Disclosures (TCFD) aligned disclosures fully mandatory across the economy by 2025. The Financial Conduct Authority (FCA) has committed to introduce TCFD for premium listed companies in 2021 and to consult in the first half of 2021 on extending the scope of these rules, including for asset managers, life insurers and pension providers.

During the year the Financial Reporting Council (FRC) published a thematic review of climate-related considerations by boards, companies, auditors and professional bodies and investors. This highlighted that corporate reporting needs to improve to meet the expectations of investors and other users on the urgent issue of climate change. The FRC will continue to focus on the disclosure of climate-related risks within annual reports as a priority area for 2020/21 and highlights in its Annual Report that it aims to “support the Government’s green finance strategy to embed climate-related issues into corporate reporting and investment decision making”.

The FRC’s year-end letter to Audit Committee Chairs and Finance Directors and the climate thematic review set out its reporting expectations for the coming year.

The European Securities and Markets Authority (ESMA) has also announced that it will focus on disclosure of risks related to climate change as part of its enforcement priorities for 2020 financial statements. The IFRS Foundation has published educational material to highlight how existing requirements in IFRS Standards require companies to consider climate-related matters when their effect is material to the financial statements.

This UK Accounting plus page in­cludes our climate-related re­sources to assist com­pan­ies.  It includes links to:

Related resources

FRC publishes review findings on SECR

09 Sep 2021

The Financial Reporting Council (FRC) has published the findings of its review of how a sample of companies and Limited Liability Partnerships (LLPs) had complied with the Streamlined Energy and Carbon Reporting Requirements (SECR) which came into effect from 1 April 2019. The review assesses compliance with SECR, identifies emerging good practice and sets out the FRC’s expectations for reporting in future periods.

FRC publishes its third Annual Enforcement Review

03 Aug 2021

The Financial Reporting Council (FRC) has published its third Annual Enforcement Review.

The Pensions Regulator consults on draft guidance on governance and reporting of climate-related risks and opportunities

09 Jul 2021

The Pensions Regulator (TPR) has published a consultation on proposed new guidance to assist trustees in meeting tougher standards of governance in relation to climate change risks and opportunities.

Accountancy Europe comments on ways to address the climate emergency

09 Jul 2021

Accountancy Europe has provided feedback on the proposed EU Corporate Sustainability Reporting Directive (CSRD) and has released a publication on cooperation in sustainability reporting standard-setting.

FSB roadmap for addressing climate-related financial risks

08 Jul 2021

The Financial Stability Board (FSB) has submitted to the G20 Finance Ministers and Central Bank Governors for endorsement a comprehensive roadmap to address climate-related financial risks. The roadmap outlines the work underway and still to be done by standard-setting bodies and other international organisations over a multi-year period.

Financial Reporting Lab publishes a snapshot of uptake of SASB Standards

08 Jul 2021

The Financial Reporting Lab ("the Lab") has published a snapshot highlighting the adoption of Sustainability Accounting Standards Board (SASB) Standards by companies in the UK.

On the board agenda – half year 2021

27 Jun 2021

This half year update is a timely reminder of some of the important reporting areas for board focus as we enter the second half of 2021. Our articles focus on interim reporting for those of you with December year ends, and an overview of changes in the regulatory reporting landscape as the Financial Reporting Council (FRC) works towards its goal to transform itself into the Audit, Reporting and Governance Authority (ARGA).

FCA consults on further climate-related disclosure rules for listed companies and certain regulated firms

23 Jun 2021

The Financial Conduct Authority (FCA) has published new proposals on climate-related disclosure rules for listed companies and certain regulated firms. It highlights that currently the ‘quantity and quality of climate-related financial disclosures does not yet meet investors’ needs’.

Deloitte comment letter on SEC's requests for input on climate-related and other ESG disclosures

22 Jun 2021

We have commented on the US Securities and Exchange Commission's (SEC) statement requesting input from investors, registrants, and other market participants on whether current disclosures related to climate change adequately inform investors.

ICAEW webinar on climate risk and corporate reporting

21 May 2021

The Institute of Chartered Accountants in England and Wales (ICAEW) will host an event to explore the Financial Reporting Council's (FRC's) thematic review of climate-related considerations by boards, companies, auditors and professional bodies and investors.

FRC announces Scenario Analysis Research Project

13 May 2021

The Financial Reporting Council (FRC) has commissioned the Scenario Analysis Research project to explore the use of scenario analysis by FTSE 350 companies.

We comment on the BEIS consultation on climate-related financial disclosures

05 May 2021

We have published our comment letter on the consultation issued by the Department for Business, Energy & Industrial Strategy (BEIS) on requiring mandatory climate-related financial disclosures by publicly quoted companies, large private companies and Limited Liability Partnerships (LLPs).

Deloitte comment letter on the BEIS consultation on climate-related financial disclosures

05 May 2021

We have commented on the Department for Business, Energy & Industrial Strategy (BEIS) consultation on requiring mandatory climate-related financial disclosures by publicly quoted companies, large private companies and Limited Liability Partnerships (LLPs). We welcome this consultation paper as an important step towards the UK government’s goal of achieving transparency in business reporting on climate-related issues across the UK economy.

Joint event held to discuss the opportunities and challenges of audit and assurance of Environmental, Social and Governance (ESG) information

03 May 2021

At a joint ACCA, ECIIA, Deloitte and Accountancy Europe event held on 29 April 2021, EU and global experts discussed the opportunities and challenges of audit and assurance of Environmental, Social and Governance (ESG) information.

ACCA publishes a report on climate change reporting by companies within the extractive industries

01 Apr 2021

The Association of Chartered Certified Accountants (ACCA) and the University of Glasgow Adam Smith Business School has published a report containing the results of a study that looked at climate change reporting by mining, oil and gas companies.

Finance for the Future Awards - open for entries

30 Mar 2021

The Finance for the Future Awards 2021 are now open for entries to all organisations, globally, whether listed, small, charities, a social enterprise or public sector, and to individuals who drive change in this area.

BEIS launches consultation on requiring mandatory climate-related financial disclosures by publicly quoted companies, large private companies and LLPs

26 Mar 2021

The Department for Business, Energy & Industrial Strategy (BEIS) has launched a consultation on requiring mandatory climate-related financial disclosures by publicly quoted companies, large private companies and Limited Liability Partnerships (LLPs). Comments are requested by 5 May 2021.

FCA Policy Statement and Listing Rule promoting better climate-related financial disclosures aligned with TCFD

01 Mar 2021

The Financial Conduct Authority has published a Policy Statement (PS20/17) and new listing rule LR 9.8.6R(8) to promote higher-quality climate-related financial disclosures. The rule is effective for accounting periods beginning on or after 1 January 2021 and applies to UK incorporated and overseas commercial companies with a premium listing. In this edition of Need to know, we outline the key requirements of the PS.

Consultation launched on draft legislation and draft statutory guidance to improve climate related reporting for occupational pension schemes

01 Feb 2021

The Department for Work and Pensions (DWP) has published a consultation on draft legislation and draft statutory guidance to improve climate-related reporting for occupational pension schemes.

Purpose-driven Business Reporting in Focus — New Prototype Climate-related Financial Disclosure Standard — accelerating progress towards global sustainability standards

22 Dec 2020

This issue discusses the new Prototype Climate-related Financial Disclosure Standard which was published by leading international standard-setters.

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