Summary
The London Stock Exchange published a guide in 2021 to provide guidance for London-listed companies on integrating climate reporting best practices and implementing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The guide highlights the importance of climate reporting as a means of enabling investors to understand a company's exposure to climate-related risks and opportunities. It outlines the key components of effective climate reporting, including the identification and assessment of climate risks and opportunities, the setting of targets and strategies for climate action, and the disclosure of relevant data and metrics. The guide also provides a step-by-step approach for companies to implement the TCFD recommendations, which includes assessing climate-related risks and opportunities, developing climate-related metrics, and reporting on climate-related risks and opportunities in mainstream company reports. Additionally, the guide emphasizes the importance of engagement with stakeholders, including investors, to ensure that climate reporting is aligned with their expectations and needs. It also encourages companies to seek external assurance of their climate reporting to enhance credibility and transparency.