The Financial Reporting Lab (the Lab) has published a report to help companies better prepare for upcoming mandatory TCFD reporting1.  It includes practical advice and examples that better address aspects of TCFD reporting from those companies already adopting the framework on a voluntary basis.

Alongside the report, the Lab has also published a snapshot of the status of current reporting against the TCFD framework in the UK.

One of the biggest challenges for companies adopting the TCFD framework is carrying out scenario analysis.  In addition to the Lab’s reports, the FRC has also published research on this by the Alliance Manchester Business School which investigates climate-related scenario analysis in more detail.

1Premium listed companies will need to report under TCFD for periods beginning 1 January 2021 but closed ended investment funds are exempt due to separate disclosure requirements to be announced imminently. These are expected to require asset managers with more than £5bn AUM to report under TCFD for each of their funds in addition to the asset management business itself. This will include any funds domiciled outside of the UK if advised by a UK FCA regulated asset manager. Those below this threshold will still need to provide their investors with the necessary data to enable their reporting.