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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

TCFD published final recommendations on climate-related financial disclosures

29 Jun 2017

The Task Force on Climate-related Financial Disclosures (TCFD) set up by the Financial Stability Board (FSB) to develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders has published its final recommendations for effective disclosure of climate-related financial risks.

Robert Bruce interviews — Explaining the issues around climate-related financial disclosures

05 Apr 2017

As Special Advisor to the Financial Stability Board’s Climate-related Financial Disclosures Task Force, the body which produced the Bloomberg Report, Russell Picot is at the forefront of efforts to encourage the disclosure of climate risks in annual reports. Robert Bruce, our regular, resident columnist has interviewed him and reports on the latest progress.

Recent sustainability and integrated reporting developments

16 Feb 2017

A summary of recent developments at the CDSB, LSEG and Deloitte.

Thinking allowed — Climate-related disclosure

15 Feb 2017

This publication looks at some of the issues involved and how companies and audit committees might respond to the challenges, drawing on a report issued by the FSB Task Force on Climate-related Financial Disclosure, to integrate the implications of climate change in their corporate reporting effectively.

LSEG issues guidance for ESG reporting

10 Feb 2017

The London Stock Exchange Group (LSEG), through its Global Sustainable Investment Centre, has issued guidance setting out recommendations for good practice in Environmental, Social and Governance reporting (ESG).

The Bruce Column — Making the financial implications of climate-related risks clear

01 Feb 2017

The recommendations of the Task Force on Climate-related Financial Disclosures marks a shift in the focus of the reporting of climate change and ensuring that companies explain the risks and opportunities that result. Our resident, regular columnist Robert Bruce explains the implications.

ICAEW/TCFD webinar on TCFD consultation on climate-related financial disclosures

13 Jan 2017

The Institute of Chartered Accountants in England and Wales (ICAEW) and the Task Force on Climate-related Financial Disclosures (TCFD) will be hosting a webinar on the TCFD’s consultation on climate-related financial disclosures on 23 January 2017.

Recent sustainability and integrated reporting developments

16 Dec 2016

A summary of recent developments at the CDSB, WBCSD, GRI, GSSB, IIRC, and IPSASB.

TCFD launches consultation on climate-related financial disclosures

15 Dec 2016

The Task Force on Climate-related Financial Disclosures (TCFD) set up by the Financial Stability Board (FSB) to develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders has published a consultation paper with recommendations for effective disclosure of climate-related financial risks.

FSB announces additional members to its Task Force to develop climate-related financial disclosures

20 May 2016

The Financial Stability Board (FSB) has announced additional members to the Task Force on Climate-related Financial Disclosures (TCFD).

ACCA report concludes that the fragmentation of the sustainability reporting landscape undermines its potential

13 May 2016

A new report from the Association of Chartered Certified Accountants (ACCA) and the Climate Disclosure Standards Board (CDSB) suggests that despite progress made in sustainability reporting and its growing importance, the fragmentation of the landscape might mean that the discipline is "lost in the right direction".

Recent sustainability reporting developments

10 May 2016

A summary of recent developments at the CDSB & CDP and GRI.

FRC comment letter on the Phase 1 Report of the TCFD into reporting of climate related risks

04 May 2016

The Financial Reporting Council (FRC) has published a comment letter on the Task Force on Climate-Related Disclosures (TCFD)’s Phase 1 Report into the reporting of climate related risks by companies.

FSB task force on climate-related financial disclosures publishes first report

01 Apr 2016

The Task Force on Climate-related Financial Disclosures (TCFD) set up by the Financial Stability Board (FSB) to develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders has published its first report.

CDSB publishes review of environmental reporting by FTSE 350 companies

04 Feb 2016

The Climate Disclosure Standards Board (CDSB) has published a review of the annual reports of FTSE 350 companies, looking at how these companies incorporate environmental issues into their strategic reports. The publication identifies reporting trends and showcases examples of best practice from published reports. It also sets out the CDSB's views on how regulators can enhance the enabling environment for disclosure. At the launch of the report, Stephen Haddrill, CEO of the Financial Reporting Council (FRC), gave his perspective on the CDSB's findings.

FSB Task Force to develop climate-related financial disclosures

06 Dec 2015

The Financial Stability Board (FSB) has announced that it is to create an industry-led disclosure task force on climate-related financial risks.

CDSB publishes framework for reporting environmental information and natural capital

12 Jun 2015

The Climate Disclosures Standards Board (CDSB) has published a framework for the reporting of environmental information and natural capital in mainstream reports such as the annual report.

CDSB seeks views on updated environmental reporting framework

20 Feb 2014

The Climate Disclosure Standards Board (CDSB) has published a consultation draft of the second edition of its 'CDSB Framework', which is designed to assist in the preparation and presentation of specific environmental information for the benefit of investors. Compared to the existing framework, the consultation draft proposes to extend the scope of environmental reporting beyond climate change to include natural capital information about water and forest commodities.

New XBRL taxonomy for climate change reporting released

14 Nov 2012

The Carbon Disclosure Project (CDP) and the Climate Disclosure Standards Board (CDSB) have released an XBRL (eXtensible Business Reporting Language) climate change reporting taxonomy. The new taxonomy is designed to make climate change reporting easier and more streamlined and aims to facilitate the future integration of climate change data into mainstream financial reports.

Proposed XBRL 'Climate Change Reporting Taxonomy' published

07 Sep 2012

The Carbon Disclosure Project (CDP) and the Climate Disclosure Standards Board (CDSB) are calling for comments on a proposed XBRL climate change reporting taxonomy.

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