Large companies and pension schemes must report climate change risk under current law and regulation, or face new legislation, warns the Environmental Audit Committee.
Photo: Chrisjtse, Flickr.
New climate change law will be foisted onto companies if regulators fail to help them follow best practice on reporting.
The House of Commons’ Environmental Audit Committee (EAC) today said that current companies’ legislation effectively requires businesses to report on risks and opportunities presented by climate change, and this must also apply to asset holders (such as pension schemes).
Existing rules and codes, including The Companies Act, Corporate Governance Code and Stewardship Code, should be leveraged to push for greater disclosure.
The focus on investment decisions on short-termism means that longer-term considerations
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
MPs investigating the collapse of Carillion have levelled scathing criticism at the former finance director, the board, auditors and regulators, calling for the referral of Big Four auditors to the Competition and Markets Authority.
Register to receive free article views and resource downloads, plus all the latest news alerts straight to your inbox. Register