WiredGov Newswire (news from other organisations)
FRC statement on the Government’s Green Finance Strategy
The Government has announced its Green Finance Strategy which recognises the role of the financial sector in delivering global and domestic climate and environmental objectives.
In response, the FRC has issued a joint statement with other financial regulators, including the PRA, FCA and the TPR which can be viewed here, while the FRC's statement is below.
The Boards of UK companies have a responsibility to consider their impact on the environment and the likely consequences of any business decisions in the long-term. They should therefore address, and where relevant report on, the effects of climate change (both direct and indirect). Reporting should set out how the company has taken into account the resilience of the company’s business model and its risks, uncertainties and viability in both the immediate and longer-term in light of climate change. Companies should also reflect the current or future impacts of climate change on their financial position, for example in the valuation of their assets, assumptions used in impairment testing, depreciation rates, decommissioning, restoration and other similar liabilities and financial risk disclosures.
The FRC assists companies, their Boards and investors to fulfil their responsibilities as follows:
- The new UK Stewardship Code will require investors to integrate stewardship and investment, taking into account material environmental, social and governance issues, including climate change.
- The updated UK Corporate Governance Code requires Boards to discuss how the matters (including environment matters) set out in section 172 of the Companies Act 2006 have been considered by the company and report on how opportunities and risk to the future success of the business have been considered and addressed.
- The Strategic Report requires companies to report on their principal risks and environmental matters when material. The FRC’s Guidance on the Strategic Report has been updated to encourage better reporting on non-financial matters and the requirement for companies to report on the responsibilities of directors under s.172 of the Companies Act, that includes how they have regard to the environment in their business operations.
- Through the Joint Forum on Actuarial Regulation, the FRC highlights the risks to high quality actuarial work arising from climate change in the annual Risk Perspective.
The FRC will monitor how companies and their advisers fulfil their responsibilities as follows:
- The FRC will continue to review whether companies are complying with the statutory disclosure requirements of the strategic report (which includes reporting on principal risks and uncertainties) as well as any financial statement implications of climate change
- The FRC’s audit monitoring will include consideration of the adequacy of the auditors’ work on principal risk disclosures, including climate risk and the financial statement implications of climate change.
The FRC’s Financial Reporting Lab will provide practical guidance later this year on how companies can best consider and report on climate related risk and opportunities. The FRC’s project on the Future of Corporate Reporting will also consider the need for improved non-financial/sustainability information from companies.
The FRC will itself be publishing a climate adaptation report under the Climate Change Act.
Latest News from
WiredGov Newswire (news from other organisations)
CBI Wales responds to announcement of further Welsh Government support for hospitality and tourism29/09/2020 16:05:00
CBI Wales have responded to announcement of further Welsh Government support for hospitality and tourism.
UK Space Agency: Take-off for UK-built supercomputer nanosatellites29/09/2020 15:43:00
Four government-backed nanosatellites no bigger than a microwave were launched yesterday.
Oxfam - COVID survivors from 37 countries write to pharmaceutical bosses to demand a People's Vaccine29/09/2020 15:40:00
Survivors of COVID-19 from 37 countries are among almost 1,000 people who have signed an open letter to pharmaceutical industry leaders calling for a ‘people's vaccine’ and treatments that are available to all – free from patents. The letter comes on the eve of a high-level side event about the pandemic at the UN General Assembly in New York tomorrow (30 September).
Audit Scotland - A decade of improvement at Dundee City Council, but progress needs to quicken to tackle deep social issues29/09/2020 14:40:00
Over the last ten years Dundee City Council has improved many services for residents and played a major part in the ambitious programme of projects that have transformed much of the city centre.
CMA bows to industry pressure at expense of consumers says Citizens Advice29/09/2020 13:40:00
Citizens Advice reacts to the Competition and Market Authority’s (CMA’s) initial findings on the water industry’s appeal against the latest price control.
CBI - Emma Walmsley to speak at third annual Helen Alexander memorial lecture29/09/2020 13:15:00
GSK CEO Emma Walmsley will take part in a fireside chat and audience Q&A with The Economist’s Editor-in-Chief Zanny Minton Beddoes for this year’s Helen Alexander Memorial Lecture.
CIPD and EHRC launch new guide to help organisations support employees experiencing domestic abuse29/09/2020 12:40:00
Research from HR body CIPD finds less than a quarter of employees are aware of their employer’s policy or support available for domestic abuse
Citizens Advice: Universal Credit doesn’t always fit with the reality of people’s lives29/09/2020 11:40:00
Citizens Advice has responded to a report from Human Rights Watch on the use of algorithms within Universal Credit.
More than three-quarters of business want UK/EU agreement29/09/2020 11:05:00
With the final round of Brexit negotiations now in motion, more than three-quarters of businesses (77%) say they want a deal to be agreed. Only 4% say they prefer a no deal scenario.
NHS Confederation - Major new report calls for a ‘re-imagining’ of the NHS if the service is to emerge on a stronger footing from Covid-1929/09/2020 10:40:00
The NHS is at a critical crossroads, with NHS leaders calling for a reassessment of what the health service can deliver as it prepares to grapple with a triple whammy of rising COVID-19 infections, a major backlog of treatment and reduced capacity due to infection control measures.