--- title: Climate risk Reporting And ISO 14001 description: UK businesses will be required to report their climate risks to investors starting in 2021. The Financial Reporting Council highlights the need for businesses to provide detailed information on their climate efforts and milestones. ISO 14001 certification can help businesses manage their environmental performance and meet these reporting requirements. image: https://www.mortonmccann.com/hubfs/Climate%20risk%20reporting-1.jpeg --- [Skip to content](https://www.mortonmccann.com/blog/climate-risk-reporting-and-iso-14001#main-content) - [+44 (0) 131 608 3390](https://www.mortonmccann.com/contact) [![Morton Mccann logo](https://www.mortonmccann.com/hs-fs/hubfs/Logos/White%20logo%20-%20no%20background.png?width=300&height=108&name=White%20logo%20-%20no%20background.png) ![Color logo - no background](https://www.mortonmccann.com/hs-fs/hubfs/Logos/Color%20logo%20-%20no%20background.png?width=400&height=144&name=Color%20logo%20-%20no%20background.png)](https://mortonmccann.com/) [Book a call](https://meetings.hubspot.com/steve843) - [Morton McCann](https://www.mortonmccann.com) - [About](https://www.mortonmccann.com/about) - [ISO Certification](https://www.mortonmccann.com/benefits-of-iso-certification) - [Service](https://www.mortonmccann.com/service) - [Blog](https://www.mortonmccann.com/blog) - [Contact](https://www.mortonmccann.com/contact) ###### 3 min read # Climate risk Reporting And ISO 14001 By: [Steven Rudland](https://www.mortonmccann.com/blog/author/steven-rudland) on 23-Nov-2020 07:19:00 [Regulations](https://www.mortonmccann.com/blog/tag/regulations) [Article](https://www.mortonmccann.com/blog/tag/article) ![Featured Image](https://www.mortonmccann.com/hubfs/Climate%20risk%20reporting-1.jpeg) UK Businesses must report their climate risks to investors from 2021. The [announcement by Chancellor Rishi Sunak ](https://www.theguardian.com/environment/2020/nov/09/uk-to-make-climate-risk-reports-mandatory-for-large-companies)means that from 2021, [premium listed companies](https://www.lseg.com/markets-products-and-services/our-markets/london-stock-exchange/equities-markets/raising-equity-finance/main-market/companies) on the London Stock Exchange must include climate-related information in their accounts. Businesses that do not take climate change seriously will find this to be a challenge. ## Business still ignoring climate risk The Financial Reporting Council (FRC) recently published its [Climate Thematic Review 2020](https://www.frc.org.uk/investors/climate-thematic-review-2020).  It noted that only a quarter of the companies sampled referenced climate change in their financial statements. The FRC noted that businesses who were publicly claiming “net-zero” ambitions were not detailing the progress of their efforts.  Businesses should provide detail of milestones, targets, and metrics to enable investors to understand how their commitments were being implementedusinesses should back their claims with details of milestones, targets, and metrics.. > There is little evidence that business models and company strategy are influenced by integrating climate considerations into governance frameworks – Financial Reporting Council, November 2020 > >   ## Do only large businesses need to report? The new requirement will apply initially to the largest public companies.  These are the businesses who are best placed to understand their risks. Over time, the requirement will cascade down to smaller companies. The requirement will also affect smaller, privately-held businesses that supply to larger businesses. Businesses  must take responsibility for driving environmental awareness through their supply chain.  Larger businesses will require even smaller suppliers to show how they are managing their impacts.  Microsoft, for example have updated their supplier code of conduct to make sure that their supply chain supports their [carbon negative commitment](https://blogs.microsoft.com/on-the-issues/2020/07/21/carbon-negative-transform-to-net-zero/). Another affected group will be growth-stage businesses seeking investment. Venture capitalists and private equity companies will need to include climate-related risks in their due diligence checks.  The European Union’s [commitment to sustainable finance](https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance_en) in support of the [European Green Deal](https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en) requires more detailed climate risk reporting. Climate-change impacts all of us.  The choices that we make have consequences.  Businesses need to understand their climate risk and the aspects of their activities that impact the environment.   ## How does ISO 14001 help? The [ISO 14001 ](https://www.iso.org/iso-14001-environmental-management.html)standard is a framework for implementing an environmental management system.  It requires businesses to understand their environmental aspects, and to implement controls to reduce their impact.  Achieving ISO 14001 certification requires an independent audit of the system to confirm that it follows best-practice. ISO standards are internationally recognised and enable entry to new markets for growing businesses.. Customers, regulators, employees and neighbours have expectations of environmental performance based on how it affects them.  This could mean pollution, noise levels, waste disposal, or workplace safety.  Meeting these expectations will have a positive impact on the business.  Businesses that actively manage their environmental performance are able to reduce costs, enhance their reputation, and improve employee retention. ISO 14001 requires businesses to demonstrate risk-based thinking throughout their system.  This approach should drive improvements in climate risk reporting.  A business’s environmental policy should reflect: - Legal, regulatory, and contractual obligations - Risks that the organisation is exposed to - Opportunities that the organisation can take advantage of - Needs and expectations of its interested parties - The overall strategy of the business The standard requires that environmental objectives are set, and their progress is monitored and measured. This provides the transparency that the FRC highlighted as well as giving assurance to prospective clients, partners, and investors. Businesses can improve their performance by implementing an environmental management system.  ISO 14001 certification inspires confidence for prospective customers, partners, and investors that the system follows best practices. *If you’d like to know more about ISO 14001 certification, [contact us to arrange a call](https://www.mortonmccann.com/contact)*   - [Tweet](https://twitter.com/share) ## [Not All Flights Are Equal](https://www.mortonmccann.com/blog/not-all-flights-are-equal) We all know that our flights cost more when we want more comfort than is offered by economy... ## [“Why should we get certified? We got this far without it…”](https://www.mortonmccann.com/blog/why-should-we-get-certified-we-got-this-far-without-it) My friend had just joined a fast growing company to lead their expansion in a new sector. It was... ## [Why an environmental management system is becoming a “must have” for all businesses](https://www.mortonmccann.com/blog/why-an-environmental-management-system-is-becoming-a-must-have-for-all-businesses) Canary Wharf Group has joined with 411 major corporations worldwide in[committing to a...](https://sustainability.canarywharf.com/) ##### Morton McCann Morton McCann - [Why ISO?](https://www.mortonmccann.com/benefits-of-iso-certification) - [Services](https://www.mortonmccann.com/service) - [About us](https://www.mortonmccann.com/about) - [Contact](https://www.mortonmccann.com/contact) ##### ISO Standards ISO Standards - [ISO 9001](https://www.mortonmccann.com/what-are-the-benefits-of-iso-9001-certification) - [ISO 14001](https://www.mortonmccann.com/what-are-the-benefits-of-iso-14001-certification) - [ISO 27001](https://www.mortonmccann.com/what-are-the-benefits-of-iso-27001-certification) - [ISO 13485](https://www.mortonmccann.com/what-are-the-benefits-of-iso-13485-certification) ##### Our Latest News Our Latest News ###### [Using ISO 27001 to support DORA compliance](https://www.mortonmccann.com/blog/using-iso-27001-to-support-dora-compliance) TheDigital Operational Resilience Act (DORA)is a new regulation in the European Union that aims... 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