Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he is taking steps to incentivise multinational companies to take into account climate-related risks when preparing financial reports.

Since April 2022, the largest UK-registered companies are required by law to disclose their material financial risks and opportunities associated with climate change in their annual reports, the potential effect of those risks and opportunities and how they are managed. This obligation applies to the global operations of UK companies, including overseas subsidiaries. The Financial Conduct Authority requires climate-related financial disclosures from all UK listed companies on a comply or explain basis. These measures are part of the package that fulfils the government’s commitment to be the first G20 country to mandate climate-related financial disclosures across significant parts of our economy.