Climate-related resources

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

Related resources

IFRS Foundation to assume TCFD monitoring duties as ISSB Standards pave the way for global sustainability reporting

10 Jul, 2023

The IFRS Foundation has welcomed the completion of the Task Force on Climate-related Financial Disclosures’ (TCFD) work and the transfer of monitoring responsibilities to the ISSB starting in 2024.

Deloitte comment letter on the on draft delegated regulation with regard to ESRS

10 Jul, 2023

We have commented on the draft delegated regulation supplementing the European Accounting Directive as regards sustainability reporting standards released for comment by the European Commission (EC) in June 2022.

Deloitte comment letter on the draft delegated regulation with regard to ESRS

10 Jul, 2023

We support the objectives of the European Green Deal and policy and regulation that are designed to enable the flow of high-quality, consistent and comparable sustainability information which is essential to support these objectives. We welcome the steps that the European Commission has already taken to simplify the European Sustainability Reporting Standards (ESRS) requirements by ensuring that all disclosure requirements and data points in topical standards are subject to materiality; making some disclosure requirements voluntary; and improving the understandability of the standards. Our key comments are set out in a cover letter with an appendix some comments, requests for clarification, and suggested edits on the draft ESRS, provided by some of our Deloitte experts. Our comments submitted do not represent an exhaustive set of comments due to the limited amount of time available for review of the draft delegated regulation.

Educational material on applying IFRSs to climate-related matters updated

04 Jul, 2023

The IFRS Foundation has released an updated version of its publication that shows how existing IFRS requirements require companies to consider climate-related matters when their effect is material to the financial statements.

IPSASB will develop climate-related disclosures standard

16 Jun, 2023

The International Public Sector Accounting Standards Board (IPSASB) has announced that, in view of the responses to its May 2022 consultation paper on public sector sustainability reporting, it will move ahead with the development of the first sustainability reporting standard for the public sector as respondents had agreed that the public sector urgently needs its own sustainability reporting standards.

Need to know — European Commission consults on delegated regulation for European Sustainability Reporting Standards

15 Jun, 2023

This Need to know outlines the consultation launched by the European Commission (EC) on 9 June 2023 on the draft delegated regulation that amends the Accounting Directive (Directive 2013/34/EU of the European Parliament and of the Council) for sustainability reporting standards.

Need to know — The UK climate-related financial disclosure regulations

15 Jun, 2023

This Need to know discusses regulations approved by the UK government in January 2022, which introduced climate-related financial disclosure requirements for certain UK companies and Limited Liability Partnerships (LLPs), and the related guidance issued by the government in February 2022.

European Commission consults on draft delegated regulation with regard to ESRS

09 Jun, 2023

The European Commission has launched a consultation on a draft delegated regulation supplementing the European Accounting Directive as regards sustainability reporting standards.

FRC and DBT seek applicants for Chair and members of the UK Sustainability Disclosure Technical Advisory Committee

08 Jun, 2023

The Financial Reporting Council (FRC) and the Department for Business and Trade (DBT) are seeking applications for the Chair position and members of the UK Sustainability Disclosure Technical Advisory Committee (TAC).

World Economic Forum forms group to support adoption of International Sustainability Standards

06 Jun, 2023

The World Economic Forum (WEF) has announced the establishment of a Forum ISSB Preparers Group, comprising corporate leaders with expertise in sustainability reporting. The group aims to provide insights and practical examples to the ISSB following the release of its first sustainability standards later this month.

Deloitte comment letter on TNFD Beta Framework

02 Jun, 2023

We have commented on the Taskforce on Nature-related Financial Disclosures (TNFD) – Feedback on v0.4 of the TNFD Beta Framework.

IFAC releases new placemat to guide audit committees to oversee sustainability-related disclosure

02 Jun, 2023

The International Federation of Accountants (IFAC) has released a placemat ‘Key Questions for Audit Committees Overseeing Sustainability-Related Disclosure’ to guide audit committees to oversee sustainability-related disclosure.

New guidance published on GHG reporting

01 Jun, 2023

The International Federation of Accountants (IFAC) and We Mean Business Coalition (WMBC), in partnership with Accounting for Sustainability (A4S), Global Accounting Alliance (GAA) and World Business Council for Sustainable Development (WBCSD) have released guidance to help professional accountants and finance professionals deliver robust greenhouse gas (GHG) reporting.

FRC launches consultation on changes to the UK Corporate Governance Code

26 May, 2023

The Financial Reporting Council (FRC) has launched a public consultation on proposed revisions to the UK Corporate Governance Code ("the Code") which represents the latest stage of the ‘Restoring trust in audit and corporate governance’ reform package.

G7 underlines commitment to global sustainability disclosures

22 May, 2023

Following the G7 Leaders' Summit 2023, a joint declaration has been published that stresses the need for globally interoperable sustainability disclosure frameworks.

Educational material on applying the IFRS for SMEs to climate-related matters

16 May, 2023

The IFRS Foundation has released a publication that shows how existing requirements in the IFRS for SMEs require companies to consider climate-related matters when their effect is material to the financial statements.

Need to know — UK government publishes Green Finance Strategy – Mobilising green investment

16 May, 2023

This Need to know discusses the UK government’s Green Finance Strategy - Mobilising green investment, published in March 2023.

IPSASB guidance on sustainability programme information

10 May, 2023

In light of the urgent need for sustainability reporting guidance for the public sector, the International Public Sector Accounting Standards Board (IPSASB) has issued 'Reporting Sustainability Program Information — Amendments to RPGs 1 and 3: Additional Non-Authoritative Guidance'.

Accounting roundup — April 2023

28 Apr, 2023

This Accounting roundup, covering the period January 2023 through to March 2023, pulls together the headlines for all the latest developments in accounting, providing links to a wealth of further information and resources.

ISSB will set up transition implementation group on IFRS S1 and IFRS S2

28 Apr, 2023

The International Sustainability Standards Board (ISSB) is seeking nomination of suitable candidates for membership of the 'Transition Implementation Group on IFRS S1 and IFRS S2' (TIG).

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