Audit of Bodycote PLC – climate change-related trends and risks

ClientEarth has challenged Deloitte LLP's audit of Bodycote PLC's 2017 Annual Report, asserting that the report contains material misstatements due to the omission of climate change and low carbon transition risks. ClientEarth contends that as an energy-intensive industrial manufacturer, Bodycote is materially exposed to these risks, yet the Annual Report only provides mandatory greenhouse gas emissions disclosures and a general corporate responsibility discussion. The organization argues that Deloitte, despite being a supporter of the Task Force on Climate-related Financial Disclosures (TCFD) and possessing institutional expertise on climate risks, failed to apply professional scepticism and judgement under International Standards on Auditing (ISAs). Specifically, ClientEarth suggests Deloitte breached ISA (UK) 200, 315, and 720 by not ensuring the strategic and directors' reports were prepared in accordance with legal requirements regarding the description of principal risks and future business trends. ClientEarth has submitted a complaint to the Financial Reporting Council (FRC) and requested that Deloitte explain its processes for integrating climate-related knowledge into its audit programmes.

• Bodycote PLC's 2017 Annual Report failed to provide an adequate description of principal risks, main trends affecting future performance, and long-term viability by omitting references to climate change or the low carbon transition.
• ClientEarth asserts that Deloitte LLP's audit report incorrectly stated that the strategic and directors' reports were prepared in accordance with legal requirements and contained no material misstatements.
• Deloitte possesses institutional expertise and public commitment to climate risk disclosure through its support of the Task Force on Climate-related Financial Disclosures (TCFD), which ClientEarth argues should have been applied to the Bodycote audit.
• ClientEarth identifies specific breaches of International Standards on Auditing (ISAs), including the failure to exercise professional scepticism (ISA (UK) 200), failure to understand business risks (ISA (UK) 315), and failure to identify material inconsistencies in 'other information' (ISA (UK) 720).

APA

ClientEarth (2018). Audit of Bodycote PLC – climate change-related trends and risks. https://www.clientearth.org/media/3a5otyah/letter-to-deloitte-regarding-bodycote-plc-audit-ce-en.pdf

Chicago

ClientEarth. Audit of Bodycote PLC – climate change-related trends and risks. 2018. https://www.clientearth.org/media/3a5otyah/letter-to-deloitte-regarding-bodycote-plc-audit-ce-en.pdf.

Wikipedia

{{cite press release |author=ClientEarth |title=Audit of Bodycote PLC – climate change-related trends and risks |date=5 September 2018 |url=https://www.clientearth.org/media/3a5otyah/letter-to-deloitte-regarding-bodycote-plc-audit-ce-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearth2018audit, author = {{ClientEarth}}, title = {{Audit of Bodycote PLC – climate change-related trends and risks}}, publisher = {ClientEarth}, year = {2018}, month = sep, url = {https://www.clientearth.org/media/3a5otyah/letter-to-deloitte-regarding-bodycote-plc-audit-ce-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }