Companies will have to ensure that their climate reporting is up to scratch as the accounting watchdog launched a major review into the issue, while pressure ramps up from both environmental activists and investors.
The Financial Reporting Council (FRC) said it intends to probe both firms and auditors, and it could increase standards if necessary.
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The regulator said that it will look at the level of resources that auditors such as Deloitte and KPMG have to help their staff assess the climate change impact of the firms they audit.
It hopes to complete the review by the autumn.
"Not only do boards of UK companies have a responsibility to report their impact on the environment and the risks of climate change to their business, but investors expect them to operate sustainably," said Sir Jon Thompson, the chief executive of the FRC.
"Auditors have a responsibility to properly challenge management to assess and report the impact of climate change on their business.
"The FRC has high standards for company disclosure, including regarding climate change.
"Company reports and accounts are essential to understanding how the corporate world is responding to the challenge of climate change."
Last week oil major BP unveiled a new plan to become a carbon neutral company, by some measures, by the middle of the century.
Later the Royal Bank of Scotland said it would stop funding major oil and gas companies who do not have a credible plan to become compliant with the Paris Agreement on climate change by 2021.
The chief executive of Staffline has stepped down after a year of turmoil for the recruitment firm.
Shares in the business have fallen more than 90% over the past year on the back of four profit warnings, delays to publishing its annual results and the resignation of its auditor.
The firm said that Chris Pullen, who has led the business over the past two years, has handed in his resignation.
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It comes just weeks after Staffline issued its latest profit warning, telling investors that its annual adjusted profit will be materially short of prior forecasts.
Mr Pullen will continue leading the firm during his notice period as the firm looks to "maintain business continuity", it said.
Staffline said it will launch a formal search process immediately to identify its next chief executive officer and will update the market in due course.
The recruitment and training specialist added that its outlook for 2020 is "unchanged" and trading is currently in line with expectations, despite operating in "a competitive environment".
Tracy Lewis, non-executive chair of Staffline, said: "I would like to thank Chris for his contribution to the business as both chief executive and previously finance director.
"Chris has led the business through very difficult circumstances and we wish him well for the future.
"I look forward to announcing a new CEO in due course."
Shares slipped further on the back of the resignation news, falling 5.4% to 43.9p in early trading on Thursday.
Moneysupermarket chief executive Mark Lewis has presented what is likely to be his last set of annual results for the company.
In 2019 the business scraped together a 9% rise in revenue to £388.4 million.
Profit before tax rose 8.5% to £116 million.
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Shares rose by as much as almost 11% as investors were buoyed by Moneysupermarket's performance.
It marks a strong note for Mr Lewis, who is set to leave the business as soon as a replacement chief executive can be found.
The three-year boss announced on Wednesday that he was looking for a career change.
The board is now looking for his replacement.
"It's good to report the group returned to profit growth and once again helped UK households save over £2bn on their bills," he said.
"Innovation will continue in 2020 as MoneySavingExpert, the most trusted brand for finding energy deals, launches a new energy autoswitching service."
Posting 39% growth over the year, to £68.6 million in revenue, home services is Moneysupermarket's fastest growing segment.
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