A review of year two of TCFD reporting


In PwC’s second year of mandatory reporting under the UK Listing Rules, the Task Force on Climate Related Financial Disclosures (TCFD) framework has been both a major commitment for companies and a significant addition to UK annual reports. The primary intention of the TCFD framework is to provide investors, banks, and other financial institutions with more detailed information about the actual and potential financial impacts of climate change.

In this report, PwC looks at how TCFD reporting has progressed in year two, based on a review of 50 of the first companies to report for December 2022. The report provides practical recommendations on how companies can continue to improve the quality of their reporting.

It’s important that companies continue to develop their climate change reporting to realise benefits such as increased investor confidence, enhanced reputation and opportunities for growth. But it’s also important because regulators, including the FRC and the FCA, will be monitoring the situation in the light of their comments on year one. And, in some cases we think there’s a risk that some companies might find themselves unfairly accused of ‘greenwashing’ if their reporting is not sufficiently clear.

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