These Regulations make changes to reporting requirements by certain Limited Liability Partnerships to produce additional disclosures in line with the recommendations of the Taskforce on Climate-related Financial Disclosures. The Government recognises the recommendations of the Financial Stability Board’s (FSB) Taskforce on Climate-related Financial Disclosures (TCFD) as one of the most effective frameworks for companies to analyse, understand and ultimately disclose climate-related financial information against.
The Taskforce’s recommendations set out how companies across sectors and geographies can assess and disclose their governance, strategy, risk management and metrics and targets related to climate change. The aim of this instrument is to require these disclosures to promote the management of climate-related financial risk and opportunities across our economy and financial system, and these Regulations form part of wider efforts to make climate-related financial disclosures mandatory across the UK’s economy as set out in the HM Treasury-led TCFD Taskforce’s Interim Report and accompanying Roadmap.
