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Taskforce for Climate-related Financial Disclosures (TCFD) “Where do I start?” guide

With an increasing focus from investors, regulators and other stakeholder groups on businesses’ environmental, social and governance (ESG) policies and actions, organisations need to provide better information to demonstrate how these issues have been considered, particularly in relation to climate change.

The recommendations of the Taskforce on Climate-related Financial Disclosures have now begun to be incorporated into the UK regulatory framework. The Financial Conduct Authority requires companies with a UK premium listing to report on a ‘comply-or-explain’ basis against the TCFD framework, for periods beginning on or after 1 January 2021.

This guide covers:

  • The basic elements of the TCFD framework
  • The Listing Rules requirements for premium listed companies (excluding investment trusts)
  • Key practical aspects of reporting against the framework
  • The relevance of the TCFD framework for organisations other than premium listed companies
  • A reminder of other climate-related reporting requirements
Wind turbine from aerial view in morning

TCFD and the financial impacts of climate change

The TCFD framework is above all about disclosing and accounting for the financial impacts of climate change on businesses. Where applicable – for example assessing whether assets are impaired – these impacts should be factored into financial statements. Climate change is not just a long-term issue affecting companies in the future, it is one that requires consideration today.

Looking ahead

The UK government has published a roadmap of planned developments in climate-related reporting out to 2024-25, which would ultimately extend beyond premium listed companies to many other types of company, pension schemes, asset managers and others. Further information is provided in section 5 of the guide.

Contact us

Mark O'Sullivan

Mark O'Sullivan

Head of Corporate Reporting, PwC United Kingdom

Tel: +44 (0)7730 304057

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