The Financial Reporting Lab of the Financial Reporting Council (FRC) has published a report on developing practice in TCFD-aligned corporate reporting. The report reiterates investor expectations in relation to climate-related reporting and includes examples of best practice.

Key recommendations from the report include:

  • Governance mapping – Companies should provide an overview of how each group or committee contributes to the overall assessment and consideration of climate-related issues.
  • Risks and opportunities – Investors are looking for more nuanced reporting around risks and opportunities, featuring more information on likelihood, impact, prioritisation and time horizons.
  • Performance against targets – Investors want to understand performance against targets by the business as a whole, not just small portions that are doing well. Companies should distinguish between “aims” or “ambitions” and more concrete objectives and policies which are being actively pursued.
  • Climate-related scenario analysis – Investors remain very interested in climate-related scenario planning, and encourage an integrated discussion of how different scenarios might impact the company’s customers and suppliers, as well as the company’s strategy and performance.
Sarah Hawes
Sarah Hawes
+44 20 7466 2916

Roddy Martin
Roddy Martin
+44 20 7466 2255

Gareth Sykes
Gareth Sykes
+44 20 7466 7631