Background
The Taskforce on Climate-Related Financial Disclosure (TCFD) published its recommendations in 2017. TCFD-aligned reporting became mandatory under the Companies Act for large and listed companies in the UK private sector from 2022. The TCFD recommendations provide a framework for organisations to identify and report their climate-related risks and opportunities. The reporting requirements cover the governance, strategic impact and risk management of these issues, together with associated metrics and targets.
HM Treasury issued guidance for the phased introduction of TCFD-aligned reporting into public sector annual reports over three years, beginning in financial year 2023-24. This new reporting in central government seeks to enhance decision-making, help organisations strategically plan and build resilience, ensure long-term value and transparency for stakeholders, improve climate-related risk management and enhance response efforts.
TCFD reporting has the potential to act as a lever in government to address many of the issues identified in our previous work on climate change. This includes both the need for a culture of shared commitment, and the need to integrate climate change-related issues with wider goals, as highlighted in our 2024 report Achieving environmental improvement and responding to climate change.
Scope
This work will provide insights on government’s approach so far to implementing climate-related reporting into the public sector. It will explore:
- the value that this new reporting framework can be expected to achieve
- how implementation has been led and co-ordinated so far
- the experience of central government departments implementing the framework, including drawing out emerging good practice and shared challenges
NAO team
Director: Katy Losse
Audit Manager: Rachel Robinson