As more UK companies face mandatory reporting upon their climate related risk in line with the recommendations of the global Taskforce on Climate-related Financial Disclosures (TCFD), business needs clear roadmaps and disclosure plans to meet their objectives, said Charles Sincock, ESG lead at technology and consulting firm, Capco.
“The widening of today’s mandatory disclosure rules is vital to ensure firms continue to step up and demonstrate marked improvements in the steps and measures they are taking in climate reporting,” said Sincock.
He said the past 18 months showed widely varying degrees of quality and usability of data disclosed by around 200 financial services entities, though there is clear progress being made. But to remain on the right side of the regulators, companies must continue to refine their reporting in the short term.
“To best position themselves in the new landscape, companies should set out a disclosure roadmap and strategy which consider needs such as regulatory requirements, stakeholder expectations, and the availability of data and modelling,” said Sincock.
“This will allow them to produce clear reporting outputs and provide measurable progress period on period. Without clear signalling of strategic ESG/climate intent, questions will remain on the integrity of a company’s overall approach.”