FRC publications on ESG reporting

The FRC has published two reports in relation to ESG reporting:

• ESG data distribution and consumption – This report by the FRC Lab follows its August 2022 report on improving ESG data production and how companies can aid this process. Like the August 2022 report, this latest report is built around three elements – motivation (why investors collect ESG data); method (how they collect it) and meaning (how the data is then integrated into the investment process).
• Review of climate-related metrics and targets reporting – This thematic review follows the FRC’s 2022 thematic review which concluded that there was room for improvement in Task Force on Climate-Related Financial Disclosures (TCFD) reporting, in particular with regard to metrics and targets (see our blog post for further details). This review considered reporting on climate-related metrics and targets by 20 premium and standard listed companies operating in four sectors and presents observations and recommendations for improvements. The review contains both cross-sectoral findings and sector-specific observations for material and buildings groups, energy companies, banks and asset managers.