Summary

The UK government launched a consultation in 2021 on the introduction of mandatory climate-related financial disclosures for publicly quoted companies, large private companies, and limited liability partnerships (LLPs). The consultation received a significant response, with over 500 submissions, and the government published its response to the consultation in November 2021. The response stated that the government plans to introduce mandatory climate-related financial disclosures for these entities, which will be based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The disclosures will cover the risks and opportunities associated with climate change, as well as the financial impacts of these factors on the companies' operations and strategies. The government intends to introduce the new regulations in a phased manner, with publicly quoted companies being required to comply from 2023 and large private companies and LLPs from 2024. The regulations will apply to companies and LLPs with turnover of £200 million or more, or balance sheet total of £2 billion or more. The response also noted that the government will establish a new body, the Climate Financial Risk Forum, to provide guidance and support to companies and financial institutions in implementing the new regulations. The government will also consider extending the scope of the regulations to cover additional sectors, such as banks and insurance companies, in the future.