As part of the mandatory compliance landscape of the United Kingdom, larger organisations have a requirement to make a submission which is based on the disclosures developed by the Taskforce for Climate-related Financial Disclosures (TCFD).
As the financial implications of climate change are becoming more apparent, there is an increasing requirement that organisations provide information on their climate-related risks and opportunities to investors and wider stakeholders including the general public. The framework developed by the TCFD aims to make organisations’ climate-related reporting more consistent and therefore more comparable, with the final report helping to assess risk and opportunity, and aid strategic planning and decision making.
The new reporting requirement applies to:
All UK companies that are currently required to produce a non-financial information statement, being UK companies that have more than 500 employees and have either transferable securities admitted to trading on a UK regulated market (such as the LSE’s main market), or are banking companies or insurance companies;
UK AIM companies with more than 500 employees;
UK companies which are not included in the categories above and have more than 500 employees and a turnover of more than £500m; and
LLPs which have more than 500 employees and a turnover of more than £500m.