Climate disclosures to be mandatory
The UK government has announced that it will become the first G20 country to enshrine in law mandatory Task Force on Climate-Related Financial Disclosures (TCFD) aligned requirements for the country’s largest companies and financial institutions to report on climate-related risks and opportunities.
In the summer, IEMA members workshopped and responded to the government’s consultation exercise. We disagreed with a proposal not to require scenario analysis, and outlined in our response why this should be included in the mandatory regime.
We are delighted that this requirement has been included in the government’s final response, which introduces a requirement for qualitative scenario analysis – a powerful tool to help companies assess climate-related risks and opportunities. The requirements will also be more closely aligned with the recommendations of the TCFD, to ensure coherence with associated requirements introduced by the Financial Conduct Authority and the Department for Work and Pensions.