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Climate-related news

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 page includes all of our news on the financial reporting impacts of climate change.  In addition Deloitte's climate change website includes a suite of learning videos, interviews with people driving climate action, and a library of links to further resources and guidance.

Related news

The Climate Financial Risk Forum publishes its second set of guides to help the financial industry to address climate-related financial risks

22 Oct 2021

The Climate Financial Risk Forum (CFRF), jointly established in March 2019 by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), has published its second set of guides to help the financial industry effectively manage climate-related financial risks.

UK Government publishes roadmap setting out details on new sustainability disclosure requirements

20 Oct 2021

The UK Government has published a roadmap setting out details of new economy-wide sustainability disclosure requirements, and the legislative and regulatory changes that will be made to deliver them. These will, for the first time, bring together UK sustainability reporting requirements under one integrated framework. The roadmap emphasises the need for high-quality, reliable, and internationally comparable sustainability information. This is necessary to improve decision-making, build trust and address risks of greenwashing.

FRC to host webinar to discuss key findings of recent corporate reporting reviews

11 Oct 2021

The Financial Reporting Council (FRC) is hosting a webinar to discuss the findings of its most recent corporate reporting reviews.

PRA publishes its thematic feedback from the 2020/2021 round of written auditor reporting

06 Oct 2021

The Prudential Regulation Authority (PRA) has published a letter to chief financial officers of selected deposit-takers which provides thematic feedback from the PRA’s review of written auditor reports received in 2021.

Carbon Tracker publishes a report on a study of climate risks in financial reporting

20 Sep 2021

Carbon Tracker has published a report on a study performed in collaboration with the Climate Accounting Project examining climate risks in financial reporting.

We comment on the FCA’s consultation paper CP21/17

11 Sep 2021

We have published our comment letter on Financial Conduct Authority’s (FCA's) consultation paper CP21/17 'Enhancing climate-related disclosures by asset managers, life insurers and FCA-regulated pension providers' (“the CP”).

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.

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’.

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).

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.

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