17 Dec 20
In November 2020 the UK government published 'A Roadmap towards Mandatory Climate-related Disclosures' setting out an indicative path towards mandatory climate-related disclosures aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
The TCFD structured its recommendations around four thematic areas that represent core elements of how organizations operate: governance, strategy, risk management, and metrics and targets. These thematic areas are designed to interlink and inform one another.
Governance - the organization’s governance and climate-related risks and opportunities.
Strategy - The actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning.
Risk Management - The processes used by the organization to identify, assess and manage climate-related risks
Metrics and Targets - The metrics and targets used to assess and manage relevant climate-related risks and opportunities.
These four core areas are supported by recommended disclosures and guidance. There is guidance to support all organizations in developing climate-related financial disclosures consistent with the recommendations and recommended disclosures as well as supplemental guidance for specific sectors
The ambitious but proportionate strategy presented in the Roadmap will help ensure that the right information on climate-related risks and opportunities is available across the investment chain – from companies in the real economy, to financial services firms, to end-investors.
The roadmap also sets out a timeline of proposed regulation or legislation applying to seven categories of organisation: listed companies, UK registered companies, banks and building societies, insurance companies, asset managers, life insurers and occupational pension schemes. Most of these organisations will be covered by climate-related reporting requirements by 2023.
To read the full report please click on the below link.