Watchdog worried climate disclosures will lead to ‘checklist mentality’
Financial Reporting Council seeks a “principles-based approach” to climate change disclosure, and worries recent guidance is so big companies will find it “onerous”.
Photo: Chrisjtse, Flickr.
The UK's governance watchdog is concerned that guidance on climate change disclosure from a body set up by the G20 will encourage a "checklist mentality" and that their scale could "impair" their usefulness.
The views have been set out by the Financial Reporting Council, in response to the disclosure guidance published at the end of last year by a task force of the Financial Stability Board (FSB). Mark Carney, governor of the Bank of England, is the chairman of the FSB.
In a statement issued this week, the FRC said the "list of suggested disclosures may risk companies adopting a checklist mentality and boilerplate approach. There is a
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