The FRC prompts boards, companies, and auditors to improve responses to climate change challenges through improved governance structure and narrative reporting.
By Paul A. Davies and Michael D. Green
On 10 November 2020, the Financial Reporting Council (FRC) published its findings (the Report) on its thematic review undertaken in 2020, concerning climate-related considerations that various stakeholders take into account. The Report focuses on boards, companies, auditors, professional bodies, and investors, as these actors help drive appropriate reporting to the market and thus ‘play important roles in delivering society’s climate ambitions’.
The UK’s Financial Reporting Council (FRC) has published a discussion paper, “A Matter of Principles — The Future of Corporate Reporting,” that aims to “provide thought leadership for the future of corporate reporting and explore ideas for a new model, challenging the status quo”. The paper, published on 7 October 2020, builds on previous independent reviews and reform proposals by the FRC.
The Financial Reporting Council (FRC) has published the final draft of the UK Stewardship Code 2020 (the Code), which sets out standards for UK institutional investors to adopt when engaging with their investments. Effective 1 January 2020, the revised Code places a greater focus on environment, social, and governance (ESG) matters. The changes reflect increased public interest in ESG since the UK Stewardship Code was last updated in 2012.