Task Force on Climate-related Financial Disclosures (TCFD)
TCFD reporting is a minefield for Finance Directors; it's far more than just climate related disclosures, and it's more than just carbon reporting.
In the UK, the Financial Conduct Authority (FCA) and the UK Government have set us on a path towards mandatory TCFD reporting.
From 1st January 2021 all Premium Listed companies have been required to state in their annual report whether their disclosures are consistent with TCFD recommendations (or explain why not). They will have already reported under the Listing Rules, essentially having had to report against the TCFD disclosures as well as the Companies Act 2006 requirements.
For periods commencing 6th April 2022, the next tranche of entities including PIEs, certain AIM-listed companies and other large private companies, plus certain LLPs have had to content with two statutory instruments amended the Companies Act 2066 and related LLP legislation: The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 and The Limited Liability Partnerships (Climate-related Financial Disclosure) Regulations 2022.
From 2025 we expect all companies will need to make climate-related disclosures, with the emphasis on materiality and further guidance is expected from the Government and the FRC in due course.
To provide some much needed clarity, Keeley Lund has compiled a briefing which provides practical guidance for finance directors, setting out the ‘when, where and what’ when it comes to making climate related disclosures.
You can watch the recording from our FD Update here
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