Open consultation: TCFD-aligned disclosure Exposure Draft for Phase 3
This Exposure Draft is to consult on new climate-related financial
disclosures in entity-level annual reports that align with the TCFD’s
recommendations. Introduction
The Phase 3 Exposure Draft
addresses the recommended disclosures for the Strategy pillars of the
TCFD framework.
Preparers, experts, and other stakeholders
from across central government and the wider public sector are asked
to provide feedback on the proposed public sector adaptations,
interpretations, and considerations – as well as the overall
completeness and clarity of the guidance. Structure
This
application guidance is additive, with Phase 3 expanding on the TCFD-
aligned disclosure application guidance for Phase 1 and Phase 2. The
Phase 1 application guidance was published in July 2023 and addressed
the recommended disclosures for the Governance pillar - applying to
in-scope central government bodies’ annual reports and accounts from
2023-24. The Phase 2 update was published in March 2024, addressing
the Risk Management and Metrics and Targets pillars - applying from
2024-25. Remit
This Exposure Draft covers the whole UK public
sector, which is the boundary for the Whole of Government Accounts.
However, the relevant authority for each jurisdiction within that
boundary will have their own due process for proposing and approving
changes to their reporting regime. This consultation does not supplant
those processes.
The proposed changes are published for
comment only. The proposals may be modified before being formally
presented to the Financial Reporting Advisory Board (FRAB) for their
approval. Effective date
The proposed effective date for
central government bodies is 1 April 2025, with Phase 3 disclosures
required in annual reports and accounts for 2025-26 on a comply or
explain basis.
Other public sector bodies should follow the
direction from their respective relevant authority. Public sector
bodies may choose to voluntarily apply this guidance - in full or in
part.