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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

FRC publishes a statement on the Government's Green Finance Strategy

03 Jul 2019

The Government has announced its Green Finance Strategy which recognises the role of the financial sector in delivering global and domestic climate and environmental objectives. In response, the Financial Reporting Council (FRC) has issued a joint statement with other financial regulators, including the Prudential Regulation Authority (PRA), Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) welcoming the strategy.

EC publishes guidelines on reporting climate-related information

19 Jun 2019

The European Commission (EC) has published new guidelines on reporting climate-related information supplementing its non-binding guidelines on non-financial reporting published July 2017.

Accountancy Europe publishes a thought-leadership paper on ways to make corporate governance a driver of a sustainable economy

16 Jun 2019

Accountancy Europe has published a thought-leadership paper which proposes ten ideas to challenge boards, policymakers and regulators as to what steps they can take to change how their businesses are run and drive forward a more sustainable economy which is able to face the threats of climate change, declining natural resources and pollution.

Summary report on the EC consultation on updating the non-binding guidelines on non-financial reporting

12 Jun 2019

The European Commission (EC) has published a report summarising the responses to the draft supplement to its non-binding guidelines on non-financial reporting with specific reference to climate-related information.

New Deloitte climate change website

12 Jun 2019

Deloitte, in collaboration with the Institute of Chartered Accountants in England and Wales (ICAEW), has launched a dedicated climate change website and video learning programme.

Reporting on climate risk increasing but still needs more financial impact analysis

06 Jun 2019

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 second status report providing an overview of the extent to which companies in their 2018 reports included information aligned with the core TCFD recommendations published in June 2017.

Recent sustainability and integrated reporting developments

23 May 2019

A summary of recent developments at SASB/CDSB, UNEP FI, IIRC, ACCA, IRC, WICI, GRI, and SSE.

AASB updates research paper on climate-related risks disclosure

02 May 2019

The Australian Accounting Standards Board (AASB) has released the latest version of 'Climate-related and other emerging risks disclosures: assessing financial statement materiality using AASB Practice Statement 2'.

IASB chair discusses sustainability

02 Apr 2019

At the Climate-Related Financial Reporting Conference in Cambridge, UK, IASB chair Hans Hoogervorst gave a speech titled ‘What sustainability reporting can and cannot achieve’.

CRD launches market consultation to gather views on how to drive better alignment of sustainability reporting frameworks

25 Mar 2019

The Corporate Reporting Dialogue (CRD) has launched a six week consultation to gather views from stakeholders on how to drive better alignment of sustainability reporting frameworks, as well as with frameworks that promote integration between non-financial and financial reporting.

Deloitte responds to the EC consultation on the update to non-binding guidelines on non-financial report

21 Mar 2019

We have commented on the European Commission's targeted consultation on the update of the non-binding guidelines on non-financial report and support the EC’s efforts to improve climate-related disclosures and welcome its approach in encouraging companies to implement the FSB’s Task Force on Climate-related Financial Disclosures (TCFD) and incorporating them into the EC guidelines.

CRD releases paper on SDGs and the future of corporate reporting

01 Mar 2019

The Corporate Reporting Dialogue (CRD), which brings together organisations that have significant international influence on the corporate reporting landscape, has a position paper supporting the development of better reporting guidelines for the Sustainable Development Goals (SDGs).

EC consults on updating the non-binding guidelines on non-financial reporting

21 Feb 2019

The European Commission (EC) has published a draft supplement to its its non-binding guidelines on non-financial reporting with specific reference to climate-related information.

Recent sustainability and integrated reporting developments

12 Feb 2019

A summary of recent developments at GRI, IOSCO, WBCSD/CDSB, IIRC, the UK Government, the Carbon Trust, and XBRL International.

Environmental reporting guidelines published

04 Feb 2019

Guidance to help companies comply with the Streamlined Energy and Carbon Reporting regulations, including greenhouse gas (GHG) reporting have been published.

Deloitte comment letter on FCA Discussion Paper - Climate change and green finance

01 Feb 2019

We have published our comment letter on the Financial Conduct Authority (FCA)'s Discussion Paper DP 18/8: Climate change and green finance.

We comment on FCA Discussion Paper - Climate change and green finance

01 Feb 2019

We have published our comment letter on the Financial Conduct Authority (FCA)'s Discussion Paper DP 18/8: Climate change and green finance.

The Carbon Trust publishes findings on climate risk disclosure

31 Jan 2019

The Carbon Trust has published a summary of its findings on climate risk disclosure, in which it reveals that two-thirds (67%) of UK corporates plan to disclose climate-related risks and opportunities in their 2019 annual reports.

IOSCO statement on disclosure of ESG matters by issuers

21 Jan 2019

The International Organization of Securities Commissions (IOSCO) has published a statement setting out the importance for issuers of considering the inclusion of environmental, social and governance (ESG) matters when disclosing information material to investors' decisions.

EC expert group issues report on disclosure of climate-related information

10 Jan 2019

The Technical Expert Group on Sustainable Finance set up by the European Commission (EC) has published its first report on companies' disclosure of climate-related information. It contains recommendations that will allow the EC to update its non-binding guidelines on non-financial reporting with specific reference to climate-related information, in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) established by the Financial Stability Board.

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