The FRC Lab has published a report on net zero disclosures, which form part of the commitments companies make to reduce their greenhouse gas emissions. The report looks at how investors use these disclosures, investor views on current standards on net zero disclosures, and the challenges facing companies in making the disclosures.
The FRC Lab has identified three elements which investors want to understand from net zero disclosures by companies, namely:
- what commitments have been made in relation to net zero;
- how those commitments impact the company's strategy and business model; and
- how performance against those commitments is being measured.
Alongside the report, the FRC Lab has made an example bank available, highlighting and analysing good practice.
The FRC has published a number of other reports recently, including:
- a thematic review of Earnings per Share reporting in financial statements by listed companies in accordance with IAS 33 as required under IFRS and UK GAAP (September 2022);
- a thematic review of reporting on business combinations, to highlight better practice and areas for improvement (September 2022);
- a review and six infographic snapshots on the current state of auditor reporting in the UK (August 2022);
- a report by the FRC Lab on structured digital reporting, reflecting on good practice and recommended improvements following the implementation of the structured electronic format reporting requirements for listed companies (see our snapshot for further details on these requirements) (September 2022); and
- a joint report with Cranfield University on the barriers to progression to senior leadership for those from minority ethnic groups (October 2022).
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