The carbon reporting legislation timeline
Do you need to look ahead and prepare for upcoming carbon reporting legislation? This timeline provides a snapshot of some of the major regulation that will be introduced over the next few years.
This is a live page that will be updated regularly with new information.
2022
TCFD
What: UK-registered companies and financial institutions will have to disclose climate-related financial information in line with recommendations from the TCFD. TCFD is an industry-led group which helps investors understand their financial exposure to climate risk and works with companies to disclose this information in a clear and consistent way.
Region: UK
Who it applies to: All large UK companies*
Mandatory: Yes
First reporting period: FY23
Content: Climate-related financial information, including scenario analysis, performance against climate related targets, and KPIs.
Governing body: UK Government
Where to be reported: Annual report
Assurance: No
Status: Came into effect on 6 April 2022
*Large company is defined as:
- Listed companies, banks or insurers with > 500 employees
- UK-based AIM companies with > 500 employees
- LLPs with > 500 more employees and > £500m turnover
This is likely to expand by 2025.
Learn more about TCFD here.
ISSB
What: The ISSB’s aim is to deliver a comprehensive global baseline of sustainability-related disclosure standards. They should provide investors and other capital market participants with information about companies’ sustainability-related risks and opportunities to help them make informed decisions from globally consistent disclosures.
Region: Globally
Who it applies to: Determined by individual jurisdiction.
Mandatory: Determined by individual jurisdiction. The UK has already indicated will form key part of future requirements.
First reporting period: TBC
Content: scope 1, 2 and 3 along with intensity metric for each of the Scopes and targets
Governing body: Global IFRS institute
Where to be reported: Annual report
Assurance: No
Status: To be published by end of 2022
Learn more about ISSB here.
2023
SEC
What: As investor demand for climate and other environmental, social and governance (ESG) information soars, the SEC is responding with an all-agency approach which would require public companies to provide detailed reporting of their climate-related risks, emissions, and net-zero transition plans.
Region: US
Who it applies to: All SEC registrants, including foreign private issuers.
Mandatory: Yes
First reporting period: FY23
Content: Scope 1, 2 and 3 (if material) along with intensity metrics and targets
Governing body: SEC
Where to be reported: Annual report
Assurance: Yes – starting limited moving to reasonable
Status: Being drafted, release date likely end of 2022
Learn more about SEC here.
2024
CSRD
What: The EU’s proposed Corporate Sustainability Reporting Directive, which would amend and significantly expand the existing EU requirements for sustainability reporting. This will go hand in hand with and required by EU Taxonomy. It has a multi-stakeholder focus, including investors, with core principles for disclosure.
Region: EU
Who it applies to: All large companies* and listed EU companies and groups with significant operations in EU.
Mandatory: Yes
First reporting period: FY24
Content: Scope 1, 2 and 3 along with intensity metrics based on turnover for total emissions in ‘high climate impact sectors’ and targets based on Paris Agreement.
Governing Body: EFRAG
Where reported: Annual report within the management report
Assurance: Yes – limited assurance with the potential to move to reasonable assurance.
Status: To be published in October 2022
*Large companies are defined as meeting 2 of the following criteria:
- > 250 employees
- > EUR 40 mil revenue
- > EUR 20 mil total assets
Learn more about CSRD here.
2050
NET ZERO
Region: Globally
Who it applies to: UK committed by law in 2019
Learn more about Net Zero here.
Glossary
CSRD
The EU’s proposed Corporate Sustainability Reporting Directive, which would amend and significantly expand the existing EU requirements for sustainability reporting
EFRAG
European Financial Reporting Advisory Group, which is responsible for developing European Sustainability Reporting Standards
EU Taxonomy
A classification system, establishing a list of environmentally sustainable economic activities. Provide companies, investors and policymakers with appropriate definitions for which economic activities can be considered environmentally sustainable
ISSB Board
International Sustainability Standards Board
NFRD
EU Non-Financial Reporting Directive
SASB Standards
Sustainability Accounting Standards Board Standards
SEC
US Securities and Exchange Commission