FRC highlights inconsistencies in climate disclosures
The UK Financial Reporting Council (FRC) has reviewed the first round of mandatory Climate-related Financial Disclosures (CFD) from AIM-listed and large private companies, finding significant variation in quality. While companies have made efforts to comply, many disclosures lacked clarity, consistency, and depth.
Introduced in April 2022, CFD requirements apply to companies with over 500 employees that are either traded, banking, insurance, or AIM-listed, or private firms with turnover above £500 million. The FRC’s review highlights good practices and areas for improvement, providing a benchmark for future reporting.
For climate disclosures to be truly effective, they must be clear, comparable, and digital. Aligning with the ISSB’s IFRS Sustainability Disclosure Standards and adopting structured XBRL reporting will enhance transparency, consistency, and usability—key to supporting informed decision-making.
Read the full FRC review here.
