There has been a lot of activity around the world on climate regulations and we expect the disclosure requirements to expand over time.
TCFD reports are a popular framework for stock exchanges and regulators of listed companies. The UK, Singapore, Egypt, and New Zealand are currently using TCFD for their disclosures for accounting periods starting in 2023.
The EU is using their own disclosure framework with the EU Taxonomy, SFDR, NFRD and CSRD. EU Taxonomy reporting is currently required for certain sectors and SFDR is required for sustainable funds, financial market participants and advisers. NFRD is currently required for large corporations and will be transforming into the CSRD requirements next year.
Over in the US, we anticipate that the SEC will finalize their rules and enforcement timelines for climate financial disclosure in October 2023.
Next year will be another big year for climate regulations, the disclosures currently enforced will expand to include more sectors or companies under the rules. We’ll see Switzerland and Canada coming into enforcement. We expected the proposed Australian climate regulation to begin on accounting periods starting on or after July 2024. We should anticipate that more regulators will continue to announce proposed disclosures or expansions next year.