FRC Scenario Analysis Research Project

News types: Generic Announcement

Published: 10 May 2021

Building on its 2020 thematic review on climate change, the Financial Reporting Council (FRC) has commissioned this project to explore the use of scenario analysis by FTSE 350 companies. The objective is to learn more about the processes through which companies develop their scenario analyses, how these processes shape the outcomes produced and how those outcomes in turn influence companies’ strategic planning and decision making. As with other FRC commissioned research the over-riding purpose is to inform our future regulatory strategy and its delivery.

Recognising that use of scenario analysis in climate-related reporting is a relatively recent development, the project will investigate both climate and non-climate applications of scenario analysis. In doing so, the research will cover a broader range of companies from which robust and relevant findings can be drawn.

The project is being carried out by Alliance Manchester Business School (AMBS), University of Manchester, whose research team brings extensive experience in public and private-sector research collaborations as well as expertise in climate-related accounting, reporting and policy. The AMBS team will survey FTSE 350 companies initially with a questionnaire, followed by in-depth interviews with relevant teams and individuals from a representative sample of companies. The extent of scenario reporting in 2020/21 annual reports will also be analysed.

Companies’ participation in this research will remain confidential to AMBS and all information shared will be fully anonymised*.

The AMBS team invite expressions of interest from individuals and teams within FTSE 350 companies who would like to participate (whether through the questionnaire, or being interviewed by the AMBS team, or both). AMBS are especially interested in hearing from those with recent experience of conducting scenario analysis, climate-related or otherwise . To express an interest in participating please click here and complete this short webform .

The questionnaire will be launched in mid-May 2021; interviews will be carried out during May, June and July.

Queries may be directed to the AMBS team at: [email protected]

* The FRC will not know which companies were invited, or which companies agreed/declined to take part. All information provided by companies, whether in questionnaire responses or in interviews, will be fully anonymised by AMBS in all reporting of the research findings (including reporting to the FRC and any subsequent publication).

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