Inevitable. Inescapable. Necessary. That’s right, you guessed it, we are talking about mandatory TCFD aligned climate disclosures. Gosh!
Last Monday (9th November 2020) Rishi Sunak made an announcement. As things go in the world of corporate sustainability, it was significant.
The UK government intends to mandate climate disclosures by 2025. To further show deliberation of this intention the government also published a detailed roadmap.
Across the UK economy this shifts all conversations from if, to when and how.
Inevitable does not mean unadaptable. It’s true the overarching approach is a coordinated one. Yet, the roadmap does make a distinction of seven categories of organisations.
Each category will have altered roadmaps implemented by relevant regulators and government departments. For example, mandatory requirements will cover 100% of listed commercial companies by 2023. Whereas coverage of UK-registered large private companies will be 50% by the same date.
Details of the roadmap and introduction of regulatory rules and legislative requirements over the next five years can be found here.
Yet, flexibility does not imply holes in the net. If there is a take home message it is that there is one, irreversible direction of travel for all organisations.
The UK’s transition to a low-carbon economy needs an accurate flow of climate-related information. And any prosperous businesses need this too.
The recommendations from the TCFD are a powerful tool. TCFD aligned disclosures ensure information is comparable and decision-useful throughout the investment chain.
The future economy of the UK (and the world) is a low-carbon one. Complete and accurate information now, will help us focus on also ensuring it is a just and fair one.
On the 20th of January Corporate Citizenship will be hosting a webinar where you can learn about the UK government’s roadmap in further detail, as well as practical next steps to enhance your climate-related disclosure in line with TCFD recommendations.