The government has today announced its intention to make climate disclosures mandatory for the largest companies.
The move is expected to make the UK the first G20 country to enshrine in law mandatory climate-related Financial Disclosures (TCFD) for Britain’s largest companies and financial institutions.
Starting from 6th April next year, more than 1,300 of the largest UK-registered companies and financial institutions will be required to disclose climate-related financial information.
The new measure will include many of the UK’s largest traded companies, banks and insurers, as well as private companies with over 500 employees and £500 million in turnover.
Energy and Climate Change Minister Greg Hands said: “If the UK is to meet our ambitious net zero commitments by 2050, we need our thriving financial system, including our largest businesses and investors, to put climate change at the heart of their activities and decision making.
“By mandating large businesses to disclose their climate risks and opportunities, the first G20 country to do so, we are showing global leadership by making our financial system the greenest in the world.”
Economic Secretary to the Treasury John Glen said: “These TCFD requirements will not only help tackle greenwashing but also enable investors and businesses to align their long-term strategies with the UK’s net zero commitments.”