Legislation
Carbon reporting is going to become part of how we run our hospitality businesses. Here is what is on the horizon.
Whats on the horizon.
The 2021 Task Force on Climate-related Financial Disclosures status report paints a picture on the direction of travel for climate reporting and risk management in listed and large companies. Here are some of the key parts of the report. The underlying theme is act not and get ahead of the inevitable.
(https://assets.bbhub.io/company/sites/60/2021/07/2021-TCFD-Status_Report.pdf)
The timings are not set in stone but it is expected that in 2023/24 the scope of TCFD in the UK will apply to a wide scope of UK listed companies and potentially to large private UK registered companies.
TCFD.
Policymakers are concerned about climate change. The TCFD has been gaining support in its mission to support a globally consistent and transparent climate risk reporting framework for companies. The profile of climate as a financial risk is accelerating and so are demands for large company disclosures of their impact.
UK Government.
In November 2020, the Chancellor of the Exchequer announced the UK’s intention to mandate climate disclosures by large companies and financial institutions by 2025. In December 2020, the FCA introduced new rules for companies with a UK premium listing to disclose climate related risks and opportunities in line with the TCFD recommendations on a comply or explain basis
London Stock Exchange.
In February 2021, LSEG pledged to embed the TCFD recommendations within its new Environmental, Social and Governance guide, mandating that all listed companies commit to TCFD-aligned financial reporting. The LSEG has officially supported the TCFD and encouraged issuers to report against the recommendations since 2017
Investment Association.
In May 2021, the IA, a coalition of UK-based investment managers with over £7.7 trillion AUM, published an open letter outlining key measures they believe G7 nations should adopt, including a commitment to “implementing mandatory economy-wide reporting on international Task Force on Climate related Financial Disclosures (TCFD) reporting agreed by national regulators.