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

Interoperability, proportionality, flexibility

27 Apr, 2023

The International Organization for Securities Commissions (IOSCO) has released the transcript of a key note address given by Jean-Paul Servais, Chair of the IOSCO Board, at the Eurofi 2023 Conference in Stockholm.

Standard setters discuss connectivity

19 Apr, 2023

The International Forum of Accounting Standard Setters (IFASS) is currently holding its spring meeting in Norwalk, Connecticut. The meeting was started with a first discussion of connectivity between financial reporting and sustainability reporting.

Finance for the Future Awards 2023 open for entries

11 Apr, 2023

Finance for the Future is a partnership between the Institute of Chartered Accountants in England and Wales (ICAEW), A4S and Deloitte and was founded in 2012. The awards are recognised globally, with past finalists in over 30 countries. The key ambition is to share best practice, drive awareness, inspire action and develop a community of finance leaders committed to tackling significant social and environmental issues.

UK government publishes 2023 Green Finance Strategy

03 Apr, 2023

The UK government has published a new policy paper, Green Finance Strategy - Mobilising Green Investment (“the 2023 Strategy”), building on the previous Green Finance Strategy which was published in July 2019. The 2023 Strategy sets out the government’s updated plans for the UK to become the world’s first net zero-aligned financial centre, including five key objectives addressing UK financial services growth and competitiveness, investment in the green economy, financial stability, incorporation of nature and adaptation and alignment of financial flows with climate and nature objectives.

TPR review into pension scheme climate reports finds areas for improvement and some good practice

29 Mar, 2023

The Pensions Regulator (TPR) has conducted a review of the first set of climate-related disclosures produced by occupational pension schemes under new regulations which came into effect on 1 October 2021 aimed at imprving governance and reportng of climate-related risks and opportunities.

IASB launches new project to explore climate-related risk reporting in financial statements

23 Mar, 2023

The IASB has launched a new project aimed at exploring ways for entities to provide better information about climate-related risks in their financial statements. The project was initiated in response to feedback from the IASB’s recent Agenda Consultation.

Deloitte response to the survey on the need for GHG protocol corporate standards and guidance updates

22 Mar, 2023

In our response, we emphasise aspects of the GHGP for which we believe there is a need for greater consistency. In particular, we recommend that that the Corporate Standard should use terminology from widely-adopted financial reporting standards – notably IFRS Accounting Standards and U.S. GAAP, to the extent possible. We believe this is particularly important to promote connectivity of GHG emissions disclosures with financial reporting.

EC tells EFRAG to concentrate on the implementation of Set 1 of the ESRS

22 Mar, 2023

On 22 November 2022, the European Financial Reporting Advisory Group (EFRAG) submitted its first set of draft European Sustainability Reporting Standards (ESRS) to the European Commission (EC) and began working on Set 2 of the ESRS, which would contain sector-specific standards. EFRAG has now been told to concentrate on providing additional guidance on how to apply the proposed standards in Set 1.

Bases for conclusions on draft ESRS available

13 Mar, 2023

On 22 November 2022, the European Financial Reporting Advisory Group (EFRAG) submitted its draft European Sustainability Reporting Standards (ESRS) to the European Commission. The bases for conclusions to go with each proposed ESRS have now become available as well.

Stay Tuned Online - March 2023

10 Mar, 2023

Stay Tuned Online is an online corporate reporting update, aimed at helping finance teams keep up to speed with narrative, governance and financial reporting issues. Each update lasts about an hour.

We comment on the Transition Plan Taskforce consultation on private sector transition plans

08 Mar, 2023

We have responded to the Transition Plan Taskforce’s (TPT's) consultation on the proposed Disclosure Framework and Implementation Guidance.

Deloitte comment letter on the Transition Plan Taskforce consultation on private sector transition plans

08 Mar, 2023

We have responded to the Transition Plan Taskforce’s (TPT's) consultation on the proposed Disclosure Framework and Implementation Guidance.

Need to know — Worldwide reach of the Corporate Sustainability Reporting Directive – final text published in Official Journal

07 Mar, 2023

This Need to know outlines the final text of the Corporate Sustainability Reporting Directive (CSRD), which has been published in the Official Journal of the European Union (EU Official Journal), following its adoption by the European Parliament and European Council, in December 2022.

EFRAG series of videos on the first set of draft ESRS

06 Mar, 2023

On 22 November 2022, the European Financial Reporting Advisory Group (EFRAG) submitted its first set of draft European Sustainability Reporting Standards (ESRS) to the European Commission.

G20 Finance Ministers and Central Bank Governors' statement notes ISSB progress

28 Feb, 2023

The G20 has issued a meeting summary of the First G20 Finance Ministers and Central Bank Governors meeting held in Bangalore on 24-25 February 2023.

Investment Association issues publication setting out shareholder priorities for 2023

24 Feb, 2023

The Investment Association (the 'IA') has issued a publication setting out shareholder priorities for 2023.

IPSASB event on public sector sustainability reporting

24 Feb, 2023

On 4 April 2023, the International Public Sector Accounting Standards Board (IPSASB), the International Federation of Accountants (IFAC), and Accountancy Europe will host an event 'Equipping the Public Sector for Sustainability Action: Advancing transparency, comparability, and accountability with sustainability reporting' in Brussels.

IOSCO, FSB comment on progress on ISSB standards

20 Feb, 2023

The International Organization for Securities Commissions (IOSCO) has released a statement welcoming the ISSB’s decision to enter into the finalisation phase of its inaugural corporate sustainability reporting standards. In addition, in a letter to the G20 Finance Ministers and Central Bank Governors, the Financial Stability Board (FSB) calls the finalisation of the ISSB's standards in the first half of this year a 'pivotal goal' in addressing climate-related financial risks.

Deloitte comment letter on the GSSB’s draft work programme

17 Feb, 2023

We have no direct suggestions on the proposed order of prioritisation for reviewing the existing GRI Standards. However, we consider that, as an overall approach, revisions to the GRI Standards should seek to enhance interoperability with those developed and issued by the International Sustainability Standards Board (ISSB) and other significant sustainability standards-setters. We agree that expanding coverage of climate-related matters is important, nevertheless, we also emphasise the increasing importance of social topics to business.

EFRAG conference "Where is Corporate Reporting heading?" — Report and recordings

16 Feb, 2023

On 7 December 2022, the European Financial Reporting Advisory Group (EFRAG) hosted a conference to debate the new trends in corporate reporting following the Environmental, Social and Governance (ESG) revolution and the connectivity with financial reporting.

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