FRC Highlights Gaps in FTSE 350 Climate Reporting

The Financial Reporting Council (FRC) released in September its 2023/2024 review of corporate reporting among FTSE 350 companies, identifying ongoing challenges in compliance with the Taskforce for Climate-related Financial Disclosures (TCFD) framework. While most premium-listed companies met reporting requirements, some continue to struggle, particularly with clear and consistent disclosures. The FRC noted that unclear statements of consistency with the TCFD framework were a common issue, and that material information was often obscured or insufficiently specific.

To address these gaps, the FRC urges companies to provide more concise, transparent and company-specific disclosures, especially in areas related to climate strategy and metrics. Companies must clearly explain the extent of their compliance with TCFD guidelines, reasons for any non-compliance and steps toward full adherence.