Premium listed entities are reporting on climate-related matters in their narrative reports, but often for the first time in the 2021/2022 reporting season. For other listed and smaller entities, the level of existing climate-related disclosure varies. But whether it be under new legislation or market-driven demands, almost all reporting entities are likely to be required to report on climate-related matters before long.
In late summer 2022, ICAEW’s Financial Reporting Faculty hosted a roundtable of senior stakeholders from a range of UK organisations to reflect on the outcome of the first reporting season since the Financial Conduct Authority’s (FCA) listing rules introduced a requirement for premium listed entities to disclose under the TCFD (Task Force on Climate-related Financial Disclosures) framework on a comply or explain basis.
The discussion focussed on assessments of the degree of progress in climate-related reporting within the UK, issues around the connectedness of ‘front half’ and ‘back half’ climate-related disclosures, implementation challenges and developing expectation gaps.
In general, there was a positive view around the table of progress made. Many noted a marked improvement in climate-related reporting in the 2021/2022 reporting season perhaps unsurprising given the introduction of the new listing rule. However, the maturity of the reporting process and the disclosures varied significantly between companies, with plenty of progress still to be made in, for examples, addressing data and knowledge gaps, and the challenges of scenario analysis.
This report summarises the thoughts shared at the roundtable, explains findings from recent faculty research and explores some of the key issues for reporters going forward.
Share your thoughts
Share your thoughts
What do you think about the state of play when it comes to climate-related reporting in the UK, and what do you consider to be the biggest challenges ahead? Email your thoughts to firstname.lastname@example.org.
Financial Reporting Faculty resources
- Visit ICAEW’s Non-Financial Reporting Hub for up-to-date information on reporting requirements
- Deloitte: A Closer Look
- PwC: The green shoots of TCFD reporting
- EY: Continuing the journey towards TCFD compliance
- FRC: CRR Thematic review of TCFD disclosures and climate in the financial statements
- FCA: Review of TCFD-aligned disclosures by premium listed commercial companies