FRC staff factsheet on climate-related matters
Anne Adrain highlights a recent FRC staff factsheet on climate-related matters for FRS 102 reporters.
The Financial Reporting Council (FRC) has published a new staff factsheet, Climate-related matters, part of a series that accompanies FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Demand from stakeholders continues to increase the focus on how Environmental, Social and Governance (ESG) matters can affect companies’ financial positions and performance, and the associated risks that they face. This increased focus has led to legislation and guidance on the content of the narrative sections of the annual report, such as requiring disclosure of greenhouse gas emissions or providing information about emission reduction strategies. Less attention has been paid to the financial statements themselves.
The FRC has helped drive improved reporting in this area with recent publications including the Climate Thematic and the ESG Statement of Intent. These publications emphasised that preparers need to consider the impact of climate-related matters on the financial statements as well as on the narrative reporting. This staff factsheet is a response to the commitments made in these publications to issue such guidance.
A link to the factsheet is available here.