Regulations Requiring Climate-related Disclosures By Listed And Large Companies

• Published date: 03 February 2022
• Subject Matter: Accounting and Audit, Finance and Banking, Corporate/Commercial Law, Accounting Standards, Financial Services, Corporate and Company Law
• Law Firm: Herbert Smith Freehills
• Author: Ms Sarah Hawes, Isobel Hoyle and Caroline Rae

Regulations that will require publicly quoted companies, large private companies and limited liability partnerships to include climate-related disclosures in their strategic reports have been made.

The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 (SI 2022/31) and the Limited Liability Partnerships (Climate-related Financial Disclosures) Regulations 2022 (SI 2022/46) come into force on 6 April 2022 and will apply to accounting periods starting on or after that date.

Under the Regulations, in-scope companies and LLPs will be required to disclose climate-related financial information broadly in line with the Task Force on Climate-related Financial Disclosure (TCFD) Recommendations (which cover governance, strategy, risk management, and metrics and targets) and the TCFD Recommended Disclosures.

The Regulations will apply to UK incorporated:

• companies that are currently required to produce a non-financial information statement (i.e. companies with more than 500 employees which are listed, or are banking or insurance companies);
• AIM companies with more than 500 employees;
• listed or banking LLPs with more than 500 employees; and
• companies and LLPs which have more than 500 employees and a turnover of more than '500 million.

Our briefing on these requirements is...