Last year, alongside the UK Government’s Green Finance Strategy announcement, the FRC set out its expectations of companies, boards, auditors and the wider accountancy profession, making it clear that they needed to play their part in ‘one of the defining issues of our time’. This year, the FRC embarked on a wide-ranging review that led to the Climate Change Thematic reports.
In addition to the five individual reports, Phil advised reading the FRC’s summary report for more detail on its key findings and how it will continue to focus on this important area of reporting.
The FRC’s statement recognises the difficulties companies face when deciding which non-financial reporting framework is most relevant for them, their investors, and other stakeholders. It supports the progression of international standards on non-financial reporting and it welcomes the IFRS Foundation’s consultation on setting up an international Sustainability Standards Board but anticipates that this will not be available in the short to medium-term.
In the meantime, the FRC supports and is encouraging companies to apply the TCFD framework alongside the Sustainability Accounting Standards Board (SASB) framework to provide the market with more consistent, comparable metrics in the interim.