Climate related publications

Reporting on climate-change continues to be an area of specific focus for investors, regulators and other business stakeholders who are increasingly expecting clearer, more specific and quantified disclosures on material climate-related risks and opportunities affected businesses.

Whilst premium-listed commercial companies and companies with a standard listing of shares or Global Depositary Receipts (GDRs) representing equity shares will now be familiar with providing climate-related financial disclosures consistent with the the recommendations and recommended disclosures of the Task Force on Climate-related Financial Disclosures (TCFD) on a ‘comply or explain’ basis, new Climate-related Financial Disclosure Regulations ("CFD Regulations") will affect entities with a 31 December year-end for the first time in 2023.

These Regulations, approved by the UK Government in January 2022, require UK public interest entities, Alternative Investment Market (AIM) companies, banking and traded LLPs, and other UK companies and limited liability partnerships (LLPs) with more than £500m turnover to make climate-related financial disclosures with exemptions for companies and LLPs with 500 or fewer employees. Many companies in the scope of TCFD disclosures under the Listing Rules will also be in scope of the CFD Regulations and therefore need to ensure that their disclosures comply with those requirements as well. Non-binding guidance issued by the UK government sets out expectations as to what should be disclosed and will help in-scope entities comply with these new requirements.

Both the Financial Reporting Council (FRC) in its thematic reviews TCFD disclosures and climate in the financial statements and TCFD – metrics and targets and the Financial Conduct Authority's (FCA's) Review of TCFD-aligned disclosures by premium listed commercial companies set out their disclosure expectations in this area. They expect businesses to consider climate-related matters and their effects when providing a balanced and comprehensive analysis of their position and performance, together with a description of the principal risks and uncertainties that they face.

The European Securities and Markets Authority (ESMA) has also announced that it will focus on climate-related matters as part of its Common Enforcement Priorities for 2023 financial statements.

Additionally an FRC Lab report provides key messages for those companies making net zero commitments with a number of key messages reiterated within the FRC's Annual Review of Corporate Reporting 2022/23.

Whilst climate reporting is improving, regulators will be looking for continued improvement in 2023 and the FRC has indicated that this coming reporting season, as reporting becomes more established, the it is likely to enter into substantive correspondence with companies where their disclosures do not meet its expectations.

Looking forwards, the International Sustainability Standards Board (ISSB) has published its first two standards: IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. The UK Government, in its 2023 Green Finance Strategy, reaffirmed its intention to adopt these standards for use in the UK, following a formal assessment of the standards and has stated its intention to finalise the endorsement decision on the ISSB standards in 2024. Once endorsed, consideration will then be given to the scope and timing of mandatory adoption of UK-endorsed ISSB standards for UK entities, with a phased implementation being considered.  In August 2023 the FCA announced plans to consult on proposals to update the Listing Rules to refer to UK-endorsed ISSB standards and is aiming to finalise its policy position on this matter by the end of 2024, with new requirements taking effect for accounting periods beginning on or after 1 January 2025.

This page includes all of our publications on the financial reporting impacts of climate change. 

Related publications

Deloitte comment letter on the draft European Sustainability Reporting Standards (ESRS)

10 Aug, 2022

Deloitte supports consistent reporting of high-quality, relevant, reliable and comparable information that will enable investors and other relevant stakeholders to make decisions that support the transition to a green and inclusive economy. The draft European Sustainability Reporting Standards (ESRS) are comprehensive and generally have the potential to result in relevant information, but we have key concerns that they will create issues for the quality of the information provided, the effective implementation and enforceability of the standards, and consequently will not support the ultimate objective.

Accounting roundup — July 2022

27 Jul, 2022

This Accounting roundup, covering the period April 2022 through to June 2022, pulls together the headlines for all the latest developments in accounting, providing links to a wealth of further information and resources.

Deloitte comment letter on the Transition Plan Taskforce’s call for evidence on proposals for a sector-neutral framework for private sector transition plans

21 Jul, 2022

We have responded to the Transition Plan Taskforce’s (TPT's) call for evidence on proposals for a sector-neutral framework for private sector transition plans.

Need to know — New FCA Policy Statement and Listing Rule promoting better climate-related financial disclosures aligned with TCFD

14 Jul, 2022

The Financial Conduct Authority (FCA) have published a Policy Statement and Listing Rules requiring listed entities to provide Task Force on Climate-related Financial Disclosure (TCFD) aligned disclosures.

Governance in focus — On the board agenda – half year 2022

05 Jul, 2022

At a time when macro topics once again dominate, this half year edition of “On the Board Agenda” has two objectives – first, to act as a reminder of key matters for the half year report, and, second, to help you set the agenda for the remainder of the year, contextualised of course as usual.

Deloitte comment letter on SEC proposal on climate-related disclosures for investors

31 May, 2022

We have responded to the request for public comment from the Securities and Exchange Commission (SEC) on the proposed rule ’The Enhancement and Standardization of Climate-Related Disclosures for Investors’.

Need to know — European sustainability reporting — EFRAG launches consultation on first set of European Sustainability Reporting Standards

24 May, 2022

This Need to know discusses the draft European Sustainability Reporting Standards (ESRS) that have been published by the European Financial Reporting Advisory Group (EFRAG) in April 2022.The publication outlines the background, proposed architecture of ESRS, proposed cross-cutting standards and proposed topical standards.

The new FCA compliance statement on TCFD disclosures-Observations from first reporters

08 Apr, 2022

This publication presents the results of our survey into how the first wave of December 2021 year-end reporters have approached the new TCFD reporting requirements.

Need to know — Sustainability reporting — ISSB proposes global baseline of sustainability disclosure standards for capital markets

06 Apr, 2022

This Need to know outlines the proposals for IFRS Sustainability Disclosure Standards IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures published for public consultation on 31 March 2022 by the International Sustainability Standards Board.

A Closer Look — Investor demand for corporate reporting in line with the Paris Agreement on climate change

25 Mar, 2022

This publication is an update to 'A Closer Look' first published in December 2020 and addresses output of the November 2021 COP26 conference in Glasgow and further expressions from stakeholders of their expectations in respect of climate-related information in financial statements, examining perceived information gaps and how they might be addressed under current IFRS Accounting Standards.

Accounting roundup — Closing Out 2021

16 Dec, 2021

Closing Out 2021 discusses the principal corporate reporting issues arising in respect of 31 December 2021 annual reports, covering areas of regulatory focus identified in the FRC’s Annual Review of Corporate Reporting 2020/2021, issues arising from climate change including new and forthcoming climate-related disclosures and developments in reporting standards.

Need to know — UK Government publishes Greening Finance: A Roadmap to Sustainable Investing

06 Dec, 2021

This Need to know discusses the UK Government’s Roadmap to Sustainable Investing, published in October 2021.

Governance in focus — On the board agenda 2022

03 Dec, 2021

As 2021 draws to a close, our annual review of board topics will stimulate your thinking and help prepare you for the year ahead. Across the board, expectations of business are rising and it is this demanding environment which shapes the articles in this year’s publication.

Governance in brief — FRC issues advice on annual reports for 2021/22 reporting season

11 Nov, 2021

The FRC issues advice on annual reports for 2020/21 reporting season

Purpose-driven Business Reporting in Focus — IFRS Foundation creates new board to set global sustainability standards

10 Nov, 2021

This edition of Purpose-driven Business Reporting in Focus discusses the IFRS Foundation’s (IFRSF) establishment of the International Sustainability Standards Board (ISSB) and explains the work programme of the IFRSF Technical Readiness Working Group. It also summarises two Prototypes on climate-related disclosure and general requirements that have been published by the IFRSF and sets out next steps, including considerations for companies and UK implications.

Annual report insights 2021 — Surveying FTSE reporting

26 Oct, 2021

Our latest annual reporting survey, Annual report insights 2021, provides insights into practices in annual reporting, focusing on areas where requirements have changed, where regulators are focusing or where innovative practices are emerging.

Deloitte comment letter on the FCA’s consultation paper CP21/18

11 Sep, 2021

We have published our comment letter on Financial Conduct Authority’s (FCA's) consultation paper CP21/18 'Enhancing climate-related disclosures by standard listed companies and seeking views on ESG topics in capital markets' (“the CP”).

Deloitte comment letter on the FCA’s consultation paper CP21/17

11 Sep, 2021

We have published our comment letter on the 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”).

Deloitte comment letter on the proposed CSRD

16 Jul, 2021

We support many of the proposals of the CSRD, including the development of EU Sustainability Reporting standards (ESRS) allowing for both international consistency and catering for EU needs and its legislative landscape. However, we note that issues at stake are global, investors and other stakeholders are often global, and many companies operate and source through global value chains. Therefore, similar to the G7 ministers of finance and central bank governors, we support a baseline global reporting standard for sustainability to be developed by the IFRS Foundation, which jurisdictions can further supplement.

Deloitte comment letter on TCFD's proposed climate-related guidance

09 Jul, 2021

We have commented on the Task Force on Climate-related Financial Disclosure (TCFD)’s June 2021 document "Proposed Guidance on Climate-related Metrics, Targets, and Transition Plans".

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