Net Zero Transition Reporting Requirements

The Government announced last year large companies will be required to publish transition plans as part of their financial reporting commitments from 2023. The Treasury has announced a Taskforce to advise on standards for the reporting. The key points are

1.  Background

• Chancellor announced in 2021 a requirement for large companies to publish transition plans from 2023 on how they will take their business to net zero by 2050 (UK target)
• Will be a requirement overseen by the Financial Conduct Authority (FCA)

2.  Transition Plan Taskforce

• Launched by Treasury to advise Government on the reporting standards
• Taskforce led by Minister Glen consists of primarily financial representatives, but also Unilever and WWF (no retail rep) full list here
• Taskforce objective to develop ‘gold’ standard of reporting to ensure consistency and rigour
• Taskforce will consider existing initiatives to recommend standard
• Intention to incorporate standard in regulation

3.  BRC Action

• We have written to Treasury asking for a meeting to discuss next steps
• Our intention will be to ensure members can take advantage of existing initiative including our Roadmap and current reporting mechanisms to minimise burdens and drive consistency
• We will update you on progress and aim to set up a call for members with officials supporting the Taskforce