The announcement comes as a part of the body’s findings of its review of reporting on emissions, energy consumption and related matters under the new streamlined energy and carbon reporting (SECR) rules that came into effect in 2019.
During the review, a sample of companies and LLPs were sampled to understand their compliance with the SECR requirements.
While the industry watchdog recognised the reports to largely comply with the minimum statutory disclosure requirements for emissions and energy consumption, it added that there remained room for improvement.
Suggestions for improvement included clearer explanations of how information is calculated, and the consideration of how to integrate these disclosures with other reporting on climate change and emission-reduction targets.
Mark Babington, executive director of regulatory standards at the FRC, said: “Addressing the urgent impact of climate change requires clear and transparent reporting so that investors and users of accounts can make informed decisions.
“While it is encouraging that examples of good practice have emerged, companies need to do more to make disclosures understandable and relevant for users.”
He added: “Looking ahead, companies should carefully consider the findings of our review with a view to providing high quality information about current emissions, in the context of increasing focus on emission-reduction commitments and strategies.”