FRC issues statement on Government’s Green Strategy

Released 02 July 2019

The Financial Reporting Council (FRC)‘recognises the role of the financial sector in delivering global and domestic climate an environmental objectives.’

In a joint statement with the Prudential Regulatory Authority (PRA), Financial Conduct Authority and The Pensions Regulator, the group have welcomed the Government’s strategy, stating that ‘Climate change is one of the defining issues of our time. We recognise it presents far-reaching financial risks relevant to our mandates from both physical factors, such as extreme weather events, and transition risks that can arise from the process of adjustment to a carbon neutral economy.’

In it’s own statement the FRC sets out that it currently assists companies, their boards and their investors through:

The proposed Stewardship Code;

The updated Corporate Governance Code;

The requirement for a company’s Strategic Report to review their principal risks and environmental matters when material, and the FRC’s Guidance on the Strategic Report; and

Through the FRC’s work in the Join Forum on Actuarial Regulation.

The FRC has stated that they will continue to monitor companies and their advisors fulfil their responsibility through review of the Strategic Reports, and through its monitoring of audit firms, as well as providing further FRC Lab Reports.

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