The Government has announced its intention for the UK to become the first country in the world to make Task Force on Climate-related Financial Disclosures (TCFD) aligned disclosures fully mandatory across the economy by 2025.
In a Commons statement the Chancellor Rishi Sunak announced that the financial services sector was to enter a new chapter in response to our departure from the EU. He announced the UK’s intention to mandate climate disclosures by large companies and financial institutions across the economy by 2025, becoming the first country to do so.
The Government has acknowledged that efforts to rebuild the global economy need to focus on supporting a ‘green recovery’ and it recognises that high-quality corporate disclosures on environmental impacts to and by business are necessary to improve transparency and drive investment in to more sustainable projects and activities.
The UK Taskforce, established in 2019 as part of the Green Finance Strategy, has published its Interim Report and accompanying roadmap.
The report and roadmap set out an indicative pathway to improve disclosures and introduce regulatory rules and legislative requirements over the next five years, with the majority of actions and mandatory requirements to be completed by 2023.
The scope of the recommendations is fairly broad covering seven categories of organisation:
- listed commercial companies
- UK registered companies
- banks and building societies
- insurance companies
- asset managers
- life insurers/ FCA regulated pensions schemes
- occupational pension schemes
Envance is an independent environmental and sustainability management consultancy. Our consultants are able to help you address these new requirements and develop strategies to improve your performance and ratings going forwards.