FRC publishes thematic review findings on climate-related metrics and targets disclosures
26 Jul 2023
The UK Financial Reporting Council (FRC) has published a thematic review assessing the quality and maturity of climate-related metrics and targets disclosures.
The FRC’s review analysed TCFD disclosures from 20 companies' 2022 annual reports across four sectors: materials and buildings, energy, banks, and asset managers. It found:
- There is an incremental improvement in the quality of companies' disclosure of net zero commitments and interim emissions targets.
- Disclosures of concrete actions and milestones to meet targets were sometimes unclear, and comparability of metrics between companies remains challenging.
- Given the large volume of information presented, many companies are finding it challenging to explain their plans for transitioning to a low-carbon economy clearly and concisely.
- Explanations of how climate targets affect financial statements still need improvement.
The full review is available on the FRC website.
