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

ESMA report on disclosures of climate-related matters in the financial statements

25 Oct, 2023

The European Securities and Markets Authority (ESMA) has a published report with examples of climate-related matters in IFRS financial statements.

Q&A platform launched to support ESRS implementation

25 Oct, 2023

The European Financial Reporting Advisory Group (EFRAG) has launched an ESRS Q&A platform that entities can use to submit questions to EFRAG regarding the implementation of the European Sustainability Reporting Standards (ESRS).

The Department for Energy Security and Net Zero launches call for evidence on Scope 3 GHG emissions reporting

20 Oct, 2023

The Department for Energy Security and Net Zero (DESNZ) has launched a call for evidence on Scope 3 greenhouse gas emissions reporting.

WBCSD publishes annual review of sustainability and integrated reports

20 Oct, 2023

The World Business Council for Sustainable Developments (WBCSD) has published its 2023 annual review of its member companies' sustainability and integrated reports.

We comment on the UK Sustainability Disclosure Technical Advisory Committee’s call for evidence on the UK endorsement of IFRS S1 and IFRS S2

20 Oct, 2023

We have published our response to the UK Sustainability Disclosure Technical Advisory Committee’s (UK SDTAC’s) call for evidence on the UK endorsement of IFRS S1 and IFRS S2 (“the call for evidence”). 

Deloitte comment letter on the UK Sustainability Disclosure Technical Advisory Committee’s call for evidence on the UK endorsement of IFRS S1 and IFRS S2

20 Oct, 2023

We have published our response to the UK Sustainability Disclosure Technical Advisory Committee’s (UK SDTAC’s) call for evidence on the UK endorsement of IFRS S1 and IFRS S2 (“the call for evidence”). 

Accounting roundup — October 2023

20 Oct, 2023

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

Need to know — European Sustainability Reporting Standards finalised

19 Oct, 2023

This Need to know outlines the first set of European Sustainability Reporting Standards (ESRS), adopted by the European Commission (EC) on 31 July 2023 in Commission Delegated Regulation supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards

TCFD publishes its 2023 status report

19 Oct, 2023

In October, the Task Force on Climate-related Financial Disclosures (TCFD) published its 2023 status report

EP votes on delaying or abandoning ESRSs

17 Oct, 2023

The European Parliament has voted on a motion that sought to delay or withdraw the European Sustainability Reporting Standards (ESRS).

FSB publishes annual progress report on climate-related disclosures

12 Oct, 2023

The Financial Stability Board (FSB) has published its annual progress report on climate-related disclosures. The report has been delivered to G20 Finance Ministers and Central Bank Governors for their 11-12 October 2023 meeting.

Blackline documents for revised SASB Standards released

11 Oct, 2023

The ISSB SASB Standards Board Advisor Group has issued a set of blackline documents detailing upcoming revisions to the SASB Standards. These revisions will enhance the international applicability of the Standards.

Transition plan Taskforce publishes its finalised Disclosure Framework and supporting guidance

11 Oct, 2023

The Transition Plan Taskforce (TPT) was established by the UK government in April 2022 with a two-year mandate to develop the ‘gold standard’ for climate transition plans. On 9 October, the TPT published its finalised sector neutral Disclosure Framework and supporting guidance.

California adopts legislation requiring climate disclosures

11 Oct, 2023

On 7 October 2023, the California Governor signed into law two state senate bills that collectively require certain public and private US companies doing business in California to provide both quantitative and qualitative climate disclosures.

FRC publishes findings on the quality of corporate reporting in 2022/2023

07 Oct, 2023

The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting 2022/2023. The report sets out the FRC’s expectations for areas of corporate reporting that require improvement and highlights the ten most frequently raised topics where improvements to reporting quality are needed. The findings follow a review of 263 annual reports and accounts with weighting in favour of the FTSE 350. 

Standard setters discuss climate-related risks in the financial statements

27 Sep, 2023

The International Forum of Accounting Standard Setters (IFASS) is currently holding its fall meeting in London. The first session of the meeting was devoted to research on climate-related risks in the financial statements and the related IASB project.

IFAC publishes study that expands insights into sustainability disclosure and assurance beyond the G20

26 Sep, 2023

The International Federation of Accountants (IFAC) has published a new study that expands its sustainability disclosure and assurance data to 20 additional jurisdictions beyond the G20 previously reported on.

IASB to move forward with project on climate-related risks

21 Sep, 2023

During its current meeting held in London, the IASB decided to explore ways to improve reporting of climate-related and other uncertainties in the financial statements.

TNFD recommendations on nature-related issues published

19 Sep, 2023

The Taskforce on Nature-related Financial Disclosures (TNFD), a global market-led initiative which aims to provide financial institutions and corporates with a complete picture of their environmental risks and opportunities, has delivered its framework for organisations to report and act on evolving nature-related risks.

Climate Week NYC will see launch of TNFD framework, discussion of ISSB standards

18 Sep, 2023

From 17 to 24 September 2023, Climate Week NYC will bring together policymakers, climate activists, civil society representatives, individuals, and CEOs from all over the world, for the largest annual climate event of its kind.

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