E3G has submitted a response to a consultation from the Department for Business, Energy & Industrial Strategy (BEIS) on requiring mandatory climate-related financial disclosure by publicly quoted companies, large public companies, large private companies and Limited Liability Partnerships (LLPs).
We welcome the UK’s leadership and its aim to be the first G20 country to make climate-related financial disclosures mandatory across the economy. This leadership, combined with the UK’s joint Presidencies of the G7 & COP26, raises the profile of disclosure regulation on the global stage as a tool to help the private sector on its journey to net zero.
In E3G’s consultation response we call on Her Majesty’s Government (HMG) to ensure that the introduction of mandatory climate-related financial disclosures leads to an increase in the quality, and underlying rigour, of material climate disclosures from companies and LLPs and in turn helps financial institutions make better climate-informed decisions.
Our recommendations include mandating the disclosure of climate transition plans, in addition to the proposed disclosure on material climate-related risks and opportunities and further regulatory support and guidance to improve the quality of disclosure against TCFD and for climate transition plans.