TCFD-aligned disclosure Exposure Draft for Phase 2
Consultation description
This Exposure Draft is to consult on new climate-related financial disclosures in entity-level annual reports that align with the TCFD’s recommendations.
Introduction
The Phase 2 Exposure Draft addresses the recommended disclosures for the Risk Management and Metrics and Targets pillars of the TCFD framework.
Preparers, experts, and other stakeholders from across central government and the wider public sector are asked to provide feedback on the proposed public sector adaptations, interpretations, and considerations – as well as the overall completeness and clarity of the guidance.
Structure
This application guidance is additive, with Phase 2 expanding on the TCFD-aligned disclosure application guidance for Phase 1. The Phase 1 application guidance was published in July 2023 and addresses the recommended disclosures for the Governance pillar, applying to in-scope central government bodies’ annual reports and accounts from 2023-24.
Remit
This Exposure Draft covers the whole UK public sector, which is the boundary for the Whole of Government Accounts. However, the relevant authority for each jurisdiction within that boundary will have their own due process for proposing and approving changes to their reporting regime. This consultation does not supplant those processes.
The proposed changes are published for comment only. The proposals may be modified before being formally presented to the Financial Reporting Advisory Board (FRAB) for its approval.
Effective date
The proposed effective date for central government bodies is 1 April 2024, with Phase 2 disclosures required in annual reports and accounts for 2024-25 on a comply or explain basis.
Other public sector bodies should follow the direction from their respective relevant authority. Public sector bodies may choose to voluntarily apply this guidance - in full or in part.
