FRC Thematic Review of TCFD and Climate Disclosures | Deloitte UK has been saved
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On 29th July 2022, the FRC released the output of their recent Thematic Review of TCFD and climate disclosures (link here). The report builds upon their 2020 Climate Thematic and focuses on an area of corporate reporting that is fast expanding in scope.
The FRC’s Review analysed the disclosures of a sample of 25 Premium Listed companies across a range of industries but weighted towards those facing greater climate risk. Of the companies reviewed, 60% were in the FTSE 100, 28% in the FTSE 250 and 12% were smaller listed companies.
This blog summarises the FRC’s headline findings and outlines our thoughts on considerations firms should have.
The FRC notes that significant progress has been made on climate reporting since the release of their 2020 Climate Thematic. However, many of the general areas for improvement identified have remained consistent across the two Thematic reviews. The 2022 Review highlights five key issues where companies can improve:
The key findings for the key pillars of the TCFD recommendations were as follows:
The FRC’s Thematic also highlighted a number of additional considerations of note:
Steve is the Head of ESG Assurance in our Audit and Assurance practice for our UK and North and South Europe partnership. Steve is a chartered accountant and has extensive experience in audit, internal audit and regulatory implementation programs. He has worked with a wide range of companies across all major industries, having developed a thorough technical understanding of products and control practices for non-financial risk management. Steve has significant experience in partnering engagements for the provision of ISAE 3000 / 3410 independent assurance over sustainability information and in relation to the sufficiency of design and operating effectiveness of processes and controls to report on non-financial information.
Emily is a Director within the Deloitte UK Audit and Assurance practice and a qualified Chartered Accountant. Emily’s experience includes leading complex assurance projects and advising clients on external reporting comprising non-financial disclosures, sustainability reporting and compliance with reporting frameworks. She also manages audit engagements for large listed and private groups. Her clients cover a range of corporate industries including professional services, consumer business, investment groups, construction and energy and resources.
James co-leads our Environmental, Social and Governance (ESG) Assurance practice in the UK. He spends much of his time talking to boards and non-execs about the fast-developing landscape of ESG reporting including the changing regulatory, stakeholder and investor requirements. He’s also responsible for developing Deloitte’s ESG assurance propositions in areas including PRI report assurance, ESG-linked finance assurance and ESG reporting assurance. James is a water resources engineer by background and has spent over 20 years in professional services working with companies in all sectors across FTSE 350, large private and PE.