FRC publishes thematic review of climate-related metrics and targets

Financial Reporting Council (FRC), UK has published its thematic review of climate-related metrics and targets. The review considers the TCFD metrics and targets disclosures of twenty UK premium and standard listed companies operating in four sectors (materials and buildings, energy, banks and asset managers) covered by TCFD sector-specific supplemental guidance.
Overall observations of the review include:

Companies’ reporting of climate-related metrics and targets has improved incrementally, with overall greater consideration of cross-sector and sector-specific metrics. However, due to the large volume of information to be presented, many companies are struggling to present a clear message to investors about which metrics and targets are materially important.
The metrics used to track progress against the companies’ climate-related targets were sometimes unclear and explanations of performance were not always provided.
Methodological differences due to company-specific adjustments made direct comparisons challenging.
It was often difficult to determine the extent to which the impact of targets on the financial statements had been considered, due to lack of company-specific disclosures.

The thematic review may be accessed here.