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UK to enshrine mandatory climate disclosures for largest law firms

The legislation follows publication of the UK's landmark Net Zero Strategy and forms part of the government’s commitment to making the UK financial system the greenest in the world

The Government has announced some of the UK’s largest law firms will have to disclose their climate-related risks and opportunities, in line with Taskforce on Climate-related Financial Disclosures (TCFD) recommendations, from April 2022. 

The legislation will ensure businesses consider the risks and opportunities they face as a result of climate change and encourage them to set out their emission reduction plans and sustainability credentials.

According to the Government, the legislation follows publication of the UK’s landmark Net Zero Strategy and forms part of the government’s commitment to making the UK financial system the greenest in the world.

This will include many of the UK’s largest traded companies, banks and insurers, as well as private companies with over 500 employees and £500mn in turnover.

The UK will become the first G20 country to implement this legislation. 

Greg Hands, energy and climate change minister, said: “If the UK is to meet our ambitious net-zero commitments by 2050, we need our thriving financial system, including our largest businesses and investors, to put climate change at the heart of their activities and decision making.”

John Glen, economic secretary to the treasury, said: “With COP26 in just a few days, I’m proud that we are taking steps to enshrine the UK’s transition to a greener financial system into law.”

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