UK financial watchdog plans climate change scrutiny

Britain’s financial accounting watchdog plans to review how companies and auditors assess and report the impact of climate change on their businesses.

UK financial watchdog plans climate change scrutiny

Britain’s financial accounting watchdog plans to review how companies and auditors assess and report the impact of climate change on their businesses, as investors push for better disclosure of the risks.

Climate change has surged to the top of the agenda for investors as policymakers demand companies step up efforts to drive the global transition to a low-carbon economy.

“Auditors have a responsibility to properly challenge management to assess and report the impact of climate change on their business,” said Financial Reporting Council (FRC) chief executive Jon Thompson.

Many money managers are concerned information they are given by companies and the accounts signed off by auditors do not give a full picture of the risks, leaving them vulnerable to steep losses. In response, the FRC said its review will examine the extent to which British companies and auditors are responding to climate-related issues to ensure reporting requirements are met.

The FRC said it would check company reports and accounts for compliance with reporting requirements and audits to see how auditors reflect climate risk.

As well as assessing the resources auditors such as KPMG, EY, Deloitte, and PwC devote to evaluating the impact of climate change, it would gauge the quality of future risk disclosures under Britain’s new corporate governance code.

Stephanie Pfeifer, chief executive of the Institutional Investors Group on Climate Change, said the review provides an opportunity to clarify the responsibilities of auditors.

more courts articles

Gary Glitter victim seeking six-figure sum in damages, court told Gary Glitter victim seeking six-figure sum in damages, court told
Man (25) in court charged with murdering his father and attempted murder of mother Man (25) in court charged with murdering his father and attempted murder of mother
Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van

More in this section

FILE PHOTO The Competition and Consumer Protection Commission has cleared the purchase of Goodbody Stockbrokers by AIB END Goodbody Stockbrokers fined over €1.2m by Central Bank over rules breaches
Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited