On 16 June, the Financial Reporting Council (FRC) published an updated edition of the Guidance on the Strategic Report to incorporate climate-related financial disclosures, following changes in legislation made earlier this year. In addition, a number of other amendments were also made to maintain alignment with legislation.
The FRC describes the guidance as “[serving] as a best practice statement and, as such, has persuasive rather than mandatory force. One of its objectives is to set out high-level principles that enable entities to ‘tell their story’…[it is] …intended to serve as best practice for all entities preparing strategic reports.”
“This Guidance relates to the Companies Act 2006 requirement to prepare a strategic report, which was brought in through the following regulations:
For entities within their scope, the new climate-related financial disclosures are effective for financial years beginning on or after 6 April 2022.
The update guidance (all 125 pages of it) can be found here.