The government has released a consultation seeking views on proposals to mandate climate-related financial disclosures by publicly quoted companies, large private companies and Limited Liability Partnerships (LLPs).
The government explained: “to support the transition to net zero, the Government considers it important to ensure that companies with a material economic or environmental impact or exposure assess, disclose and ultimately take actions against climate-related risks and opportunities by publicly quoted companies, large private companies and Limited Liability Partnerships (LLPs).”
Subject to consultation, and Parliamentary approval the rules would come into force on the Common Commencement Date of 6th April 2022. Accounting periods starting on or after 6 April 2022 will need to be compliant with these regulations.
James Brooman, Technical Consultant at Elmhurst Energy Consultancy commented: "we welcome the release of this consultation, which demonstrates further commitment to increasing the accountability companies have in relation to their impact on the environment. This consultation may pave the way for future expansion of Streamlined Energy and Carbon Reporting, as a pre-existing mechanism that could be utilised to drive forward any outcomes from this consultation."
Article published 26/04/21