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Welcome to the climate change section of Viewpoint. This includes updates and guidance to assist companies with responding to climate change in their annual report and accounts. For further guidance on broader Environmental, Social and Governance (ESG) upcoming reporting developments, please see ESG - external users.
Guidance
Issue date
Description
September 2022
The Financial Reporting Council (FRC) has recently issued two thematic reviews that deal, at least in part, with the impact of climate risk on financial statements. Specifically they highlight what entities should consider with regards to this topic for disclosures within the financial statements. The expectations from users and the regulator are high.
August 2022
The Financial Reporting Council (FRC) and the Financial Conduct Authority (FCA) have each published reports on year one of mandatory TCFD climate-related financial disclosures for premium listed companies, including a number of key findings and examples of current leading practice in reporting.
June 2022
The impact of climate change is a high-profile issue that investors and regulators are focusing on. This In depth considers the impact of the environmental, social and governance (ESG) matters, specifically focused on the effect of climate change on the IFRS financial statements.
June 2022
This guide provides a summary of the most recent international developments in ESG reporting from the perspective of a UK company, supported by Q&As.
May 2022
We have reviewed the first 50 premium-listed companies' disclosures in the 2021/22 reporting season to understand how they are reporting under the new Listing Rules requirement relating to the Task Force on Climate-related Financial Disclosures ('TCFD') framework.
May 2022
The recommendations of the TCFD are now incorporated into the Financial Conduct Authority (‘FCA’) Listing Rules for major listed companies, and similar reporting on climate change has been extended through the UK Companies Act to other listed companies and the largest private businesses, as well as LLPs.
This guide provides a high-level overview of the climate change/TCFD reporting requirements that currently apply, or will apply in the near future for companies:
A summary of the climate change/TCFD reporting requirements
The basic elements of the TCFD framework

The FCA Listing Rules TCFD requirements and accompanying guidance
Comments on key aspects of reporting against the framework in practice
The climate change reporting requirements for other publicly quoted companies and large private companies
Links to further guidance and information
May 2022
Join Raihazah Shaikh and Andreas Ohl, where they discuss the SEC proposal on the Enhancement and Standardization of Climate-Related Disclosures for Investors. Topics include an overview of the proposal and a summary of some of the similarities and differences with other similar proposals.
March 2022
On 21 March 2022, the Securities and Exchange Commission (‘SEC’) issued proposed new disclosure requirements to address the need for entities to explain the risks and impact of climate change.
February 2022
Climate change is a high profile issue and a focus area for investors and regulators. The insurance industry is accustomed to reflecting the effects of assumptions about climate change in underwriting and reserving practices. However, reflecting the effects of climate change in risk disclosures is a less-familiar area. This document outlines the factors for insurers to consider in providing disclosures about climate-related risks in financial statements.
January 2022
The purpose of this Disclosure Tool is to provide an organisation with a tool that illustrates the minimum disclosure that would be required to meet the new Listing Rules. This is not a best practice guide, nor is it a tool that will take an organisation’s disclosures beyond the minimum disclosure that would be required to meet the new Listing Rules. This Disclosure Tool has been created to assist organisations working through the disclosure process of the TCFD framework. We encourage you to share this Tool with management during the planning stage of your audit to allow management the time to work through what their Annual Report disclosures will be and whether they will need to make any explanations.
January 2022
The FCA published PS21/24: Enhancing climate-related disclosures by asset managers, life insurers, and FCA-regulated pension providers on 17 December 2021, following a consultation issued in June 2021.
December 2021
Climate change, corporate reporting, Greening Finance Roadmap, TCFD, Net Zero
December 2021
The Paris Agreement adopted at COP 21 in 2015 introduced a market based mechanism to price carbon with the aim of cost-effectively managing and reducing global greenhouse gas emissions. But carbon pricing mechanisms can raise tricky accounting questions. Andrea Pryde is joined by Claire Howells and Tom Bullock to find out more.
November 2021
Join Andrea Pryde, Gethin Evans and Kevin McLeod as they discuss how climate-related risks should be considered in measuring impairment of financial assets in the financial statements applying IFRS 9.
November 2021
Paris Aligned assumptions are a key focus of stakeholders. This In brief summarises the various considerations for companies reporting under IFRS.
November 2021
In order to achieve the aims of the Paris Agreement and limit the impact of climate change on the planet, entities worldwide are in the process of re-assessing their business models and strategy. Some business models might become unsustainable and additional investments might be needed to find new markets, repurpose assets, use alternative means of transportation and logistics or find suppliers of alternative raw materials. At the same time, climate change may present opportunities for companies offering goods and services supporting the world’s transition to net zero. We would expect the changes to business models to have an impact on cash flows.
November 2021
2020 will mark the 12th year that PwC have been reviewing sustainability reporting across the FTSE 350, public interest entities (PIEs), and inbound companies, as part of our Building Public Trust Awards. For the first time this year we have also conducted a standalone review of companies' climate change reporting, reflecting the growing importance of the Task-force on Climate related Financial Disclosures (TCFD) as uptake of its recommendations among companies continues to grow.
November 2021
This year’s Building Public Trust Awards mark the first year that we have reviewed climate change reporting across the FTSE 350, public interest entities (PIEs), and inbound companies, producing a report which sits alongside our review of sustainability reporting.
20 October 2021
It is clear that the 2020s will be pivotal in determining if we can bend the emissions curve fast enough, turning the COVID-related anomaly into a rapidly-falling emissions trajectory to limit warming to 1.5°C, the goal set out in the Paris Climate Agreement. It is in that context that this year’s report, the Net Zero Economy Index replaces the Low Carbon Economy Index. It is a recognition of the ultimate goal business and society needs to achieve, and the growing focus and momentum behind commitments from business, governments, and investors to net zero. While our analysis here focuses on energy-related CO2 emissions, we will broaden that coverage when feasible.
18 October 2021
HM Treasury published Greening Finance: A Roadmap to Sustainable Investing on 18 October 2021, which sets out the UK Government’s ambition to become a centre for sustainable finance. The roadmap focuses on ensuring decision-useful information on sustainability is available to financial decision-makers, through the introduction of new Sustainable Disclosure Requirements. These will provide a framework to ensure consistent sustainability disclosures between corporates, financial services firms, and investment products.
11 October 2021
This In brief is aimed primarily at organisations where the impacts of climate change are less obvious (sometimes far less obvious) than for those in front line sectors such as oil and gas, airlines and heavy industry. It provides guidance on identifying and reporting on climate change risks and opportunities in such circumstances, looking in particular at the role of Scope 3 and indirect or downstream emissions and at risks and opportunities that do not relate to emissions at all.
October 2021
The TCFD has released their latest status report. This report finds that disclosure of climate-related financial information aligned with the TCFD recommendations has accelerated over the past year, growing by nine percentage points in 2020 compared to four percentage points in 2019 in the prior year and finds that over 50% of firms disclosed their climate-related risks and opportunities.
October 2021
The Financial Reporting Lab (the Lab) has published a report to help companies prepare for mandatory TCFD reporting. 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.
September 2021
The SEC's Division of Corporation Finance selectively reviews filings made under the Securities Act and the Exchange Act to monitor and enhance compliance with applicable disclosure requirements. The following illustrative letter contains sample comments that the Division may issue to companies regarding their climate-related disclosure or the absence of such disclosure. The sample comments do not constitute an exhaustive list of the issues that companies should consider. Any comments issued would be appropriately tailored to the specific company and industry, and would take into consideration the disclosure that a company has provided in Commission filings.
September 2021
This study examines whether 107 publicly-listed carbon-intensive firms (and their auditors) considered material climate-related risks in financial reporting, particularly in the light of clarifications from three of the four global accounting and auditing standard-setters that climate change issues should be considered in the preparation and audit of financial statements. The study also assesses whether investor concerns about Paris-alignment of assumptions and estimates have been addressed.
July 2021
In this PwC IFRS technical update webcast, Scott Bandura and Gary Berchowitz will take you on a deep dive into the IFRS financial reporting impacts of climate risk, and what companies should be thinking about now in their accounts in relation to climate change.
9 July 2021
This short 'At a Glance', two page flyer, discusses the recent FCA consultation extending the scope of its climate-related disclosure requirements to issuers of standard listed equity shares (excluding standard listed investment entities and shell companies). The wording of the new rule and guidance would directly mirror that for premium listed companies
2 June 2021
Through our ongoing review of FTSE 350 annual reports in the 2020-21 reporting season we have explored how these trends are playing out. In this snapshot, based on a review of the first 112 FTSE 350 annual reports, we have identified a series of merging trends and consistent challenges, made a number of recommendations for improved disclosures, and used examples to highlight principles of good reporting. Perhaps most importantly, we end by focusing on the potential impacts of these 'non-financial' issues, and climate change in particular, on the financial statements and notes
June 2021
This document contains the government’s response to the August 2020 consultation – Taking action on climate risk: improving governance and reporting by Occupational Pension Schemes.
June 2021
The FCA published proposals on climate-related disclosures for asset managers, life insurers and FCA-regulated pension providers on 22 June 2021, in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Under the proposals, firms would be required to publish annually an entity-level TCFD report, as well as a set of disclosures in respect of their products and portfolios. Download this 'At a glance' for a detailed summary of the proposals, and what they mean for firms
6 May 2021
Ensuring your compliance with the new reporting requirements.
6 May 2021
Reporting Tips - Responding to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
May 2021
We have produced some guidance on the new Financial Conduct Authority ('FCA') Listing Rule for premium listed companies to report against the TCFD on a comply or explain basis. This guide the covers: The basic elements of the TCFD framework The FCA listing rules TCFD requirements for periods beginning on or after 1 January 2021 and accompanying guidance Key aspects of reporting against the framework in practice The relevance of the TCFD framework for organisations other than premium listed companies A signpost to further guidance and information
December 2020
This PwC IFRS technical update webcast covers climate change and financial reporting and top reminders for year-end reporting.
December 2020
This PwC IFRS Talks episode discusses the principles of Emissions credit accounting.
December 2020
This is a guidance document released by the Climate Disclosure Standards Board to support preparers in integrating climate-related matters into the financial statements. This guidance does not seek to create new accounting standards in relation to climaterelated matters, but builds on International Accounting Standards Board’s (IASB) position on how climate-related matters should be integrated into financial reporting based on current International Financial Reporting Standards (IFRS) Standards.
December 2020
Climate change could impact a company's financial statements in numerous areas. Engagement teams may find the following examples a useful illustration of some ways in which financial statements could be impacted.
December 2020
In this Policy Statement (PS), we summarise the feedback we received to our consultation and confirm our final policy position. This PS also contains the final rule and guidance as well as the final Technical Note.
9 November 2020
This report – and accompanying roadmap – outlines the UK’s approach to implementing the recommendations of the Taskforce on Climate-related Financial Disclosures.
November 2020
Climate change is a topic in which investors and other IFRS stakeholders are increasingly interested because of its potential effect on companies’ business models, cash flows, financial position and financial performance. Most industries have been, or are likely to be, affected by climate change and efforts to manage its impact. However some companies, industries and activities will be affected more than others.
November 2020
Throughout 2020, the FRC has undertaken a thematic review of climate-related considerations by boards, companies, auditors, professional bodies and investors. This report forms part of that review and summarises all of our findings.
23 October 2020
Scott Bandura explains the importance of climate risk for both financial and non financial reporting. Does IFRS consider climate risk? How can it impact accounting? What are the latest developments around ESG reporting & assurance? Scott tells all in the latest episode.
October 2020
This Staff Audit Practice Alert is intended to help auditors understand what already exists in the ISAs today and how that material relates to the auditor’s consideration of climate-related risks in an audit of financial statements.
August 2020
Under changes introduced by the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (‘SI 2018/1155’), large unquoted companies and large LLPs are now obliged to report their UK energy use and associated greenhouse gas (‘GHG’) emissions in their annual reports for the first time. For quoted companies that are already reporting GHG emissions, there are new requirements to report on total global energy use, including detail around methodology and energy efficiency.
1 July 2020
Managing climate-related financial risk – thematic feedback from the PRA’s review of firms’ Supervisory Statement 3/19 (SS3/19) plans and clarification of expectations.
June 2020
The NGFS Climate Scenarios (the scenarios) have been developed to provide a common starting point for analysing climate risks to the economy and financial system. While developed primarily for use by central banks and supervisors they may also be useful to the broader financial, academic and corporate communities
November 2019
In this update, Nick Anderson, a member of the Board, provides an overview intended to help investors understand what already exists in the current requirements and guidance on the application of materiality, and how it relates to climate and other emerging risks. While climate-change risks and other emerging risks are not covered explicitly by IFRS Standards, the Standards do address issues that relate to them.
April 2019
This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 23/18 ‘Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change’.1 It also contains the final Supervisory Statement (SS) 3/19 ‘Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change’.
June 2017
The 2017 final report setting out our recommendations for helping businesses disclose climate-related financial information.
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