Source · Select Committees · Environmental Audit Committee
Recommendation 17
17
Deferred
Paragraph: 103
Set out an SDR implementation timetable, commit to mandatory TNFD reporting, and phase in disclosures.
Recommendation
To maintain the UK’s global leadership in green finance reporting, the Government must keep up the momentum. We recommend that Ministers set out an overarching implementation timetable for the SDR, including for TNFD reporting, and commit to making TNFD reporting mandatory, continuing the trail the UK blazed for TCFD. The Government should consult on TNFD definitions, and should phase in compulsory TNFD disclosures over the next three to five years, starting with the largest companies.
Government Response Summary
The government reiterates its commitment to Sustainability Disclosure Requirements (SDR) and confirms it will consider how best to incorporate the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations into UK policy, deferring a commitment to a specific timetable or mandatory TNFD reporting.
Paragraph Reference:
103
Government Response
Deferred
HM Government
Deferred
We remain committed to implementing Sustainability Disclosure Requirements (SDR) and we set out clear plans to implement the components of the SDR regime in the 2023 Green Finance Strategy. Businesses can report and act on evolving nature-related risks, opportunities, impacts, and dependencies using the Taskforce on Nature-related Financial Disclosures (TNFD) risk management disclosure recommendations and guidance, launched on 18th September 2023. The UK Government has been one of the largest donors and supporters of the global, market-led TNFD initiative. We will continue to actively support the TNFD’s work and encourage UK businesses and financial institutions to engage with the TNFD recommendations and the work of the UK TNFD National Consultation Group, which is being led by the Green Finance Institute (GFI). We will consider how best the TNFD’s recommendations should be incorporated into UK policy and legislative architecture in a manner that is coherent with global sustainability reporting.