The UK government has launched a consultation on proposals to make climate-related financial disclosures mandatory from publicly listed companies, large private companies and limited liability partnerships (LLPs).
Disclosures would be in line with the requirements of the Task Force on Climate-related Financial Disclosure (TCFD) standard, a Treasury-led initiative that has been involved in developing the proposals.
The proposals build on the expectation set out in the government’s 2019 Green Finance Strategy and are designed to support the country’s transition to net zero. This transition, says the government, will require companies with a material environmental impact to assess, disclose and ultimately take actions against climate-related risks and opportunities.
The government intends the UK to become the first G20 country to make TCFD-aligned disclosures mandatory across the economy, as set out on 9 November in its 2020 Roadmap and Interim Report.
Responses to the consultation must be submitted by 5 May 2021.