UK government finalises legislation on climate-related financial disclosures
20 Jan, 2022
The Department for Business, Energy & Industrial Strategy (BEIS) has finalised two statutory instruments requiring certain UK companies and LLPs to make climate-related financial disclosures.
Under the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 (SI 2022/31), UK public interest entities, Alternative Investment Market (AIM) companies and high turnover companies with more than 500 employees will be required to report climate-related financial information in the non-financial information (NFI) statement, which is also renamed by the legislation to become the non-financial and sustainability information statement (NFSI). “High turnover” is defined as turnover in excess of £500m per annum.
Meanwhile the Limited Liability Partnerships (Climate-related Financial Disclosure) Regulations 2022 (SI 2022/46) will require LLPs with more than 500 employees and turnover of more than £500m to report climate-related financial information in either the strategic report or, if no Strategic Report is prepared, the Energy and Carbon Report which forms part of their Annual Report.
Non-binding Q&As will be produced in due course to support companies and LLPs in their application of these requirements which take effect for financial years commencing on or after 6 April 2022.
More details on the legislation can be found in our previous news item on this topic. The final regulations are available at www.legislation.gov.uk:
