In this publication, we discuss the reporting requirements most likely to be affected by climate issues, covering both the financial statements and the front-end (strategic, directors’, and governance reports). The list of potential disclosure considerations is long, and best approached once the specific issues that the company faces are properly understood and if necessary reflected in the balance sheet. A checklist approach is likely to result in unfocused, excessive disclosure.

Companies looking for climate-specific disclosure guidance may want to consider the Task Force on Climate-related Financial Disclosures' (TCFD) recommendations. The UK Government has announced an intention to require TCFD disclosures by 2022, but its recommendations can be helpful in thinking about the information needed to meet existing disclosure obligations. We have highlighted the overlap in this publication, and also additional recommendations contained in the Financial Reporting Lab’s project on climate-related corporate reporting. The TCFD has also published sector-specific guidance for those sectors it considers to be most exposed.

Download the full report – Climate in the annual report