Reporting Intelligence – February 2025
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From mandatory climate disclosures to evolving sustainability standards, this month’s reporting intelligence section explores new guidance, survey findings and regulatory updates.
FRC reviews climate-related financial disclosures from AIM and large private companies.
In January 2025, the Financial Reporting Council (FRC) published a thematic review on Climate-related Financial Disclosures (CFD) by AIM and large private companies following their initial mandatory reporting cycle. The review highlighted inconsistent disclosure quality despite compliance efforts and provided key lessons for improvement. It aims to guide companies in enhancing their climate-related disclosures as they assess climate impacts on operations and strategy. The review includes examples to help meet Companies Act requirements and serves as a benchmark for future reporting.
Download the FRC’s Review here
KPMG publishes Survey of Sustainability Reporting 2024
The Survey highlights global trends in sustainability reporting and offers insights for improving disclosure:
1. Sustainability reporting and carbon targets are now standard business practices.
2. Some companies are proactively adapting to the upcoming EU Corporate Sustainability Reporting Directive (CSRD).
3. Half of the largest companies are embracing double materiality, as the CSRD requires.
4. Many organisations still depend on voluntary reporting guidelines.
5. Reporting on biodiversity is on the rise.
6. Adoption of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations is increasing.
EU platform on sustainable finance reveals proposals to simplify and expand the EU taxonomy
The Platform on Sustainable Finance has initiated a consultation on updates to the EU taxonomy to simplify and broaden its classification of sustainable activities. The aim is to enhance the user-friendliness of the “Do No Significant Harm” criteria while expanding the range of covered activities. Established in 2022, the taxonomy categorises economic activities that support environmental objectives without causing harm. Initially focusing on climate change, it expanded to incorporate four additional objectives in 2024: sustainable use of water and marine resources, transition to a circular economy, pollution prevention, and biodiversity protection. Proposed new activities include digital solutions and the mining of critical minerals.
Access the draft report and consultation here
Corporate climate gap: 63% want more action from employers, Deloitte survey finds
A new Deloitte survey of over 20,000 respondents shows rising employee dissatisfaction with corporate climate action. Currently, 63% feel their employers aren’t doing enough to combat climate change, up from 55% in 2021. However, fewer employees are willing to change jobs over these issues, dropping from 30% in 2021 to 21% in 2023. The survey highlights that 67% consider climate change an emergency, and 60% have adjusted their personal behaviours for environmental reasons.
IFRS releases guidance for companies adopting a climate-first approach to sustainability reporting
The IFRS Foundation has released a new guide to assist companies in implementing the ISSB standards for sustainability reporting. This guide focuses on initial disclosures limited to climate information and introduces a “climate-first” transition relief. This allows companies to commence by disclosing only climate-related information. This approach addresses the urgent need for consistent information on climate risks and opportunities that investors require. Additional sustainability topics will be addressed in the coming years.
CSRD: governments continue to exert pressure to weaken and postpone
The first reports compliant with the Corporate Sustainability Reporting Directive (CSRD) will be published in 2025. However, not every European state is prepared to meet these reporting requirements. France has proposed a substantial delay in implementation and significant amendments to key European sustainability reporting and environmental due diligence regulations established in recent years.
Furthermore, Germany advocates postponing the CSRD sustainability reporting requirements for smaller businesses.
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