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FCA publishes new climate-related disclosure rules

The regulator consulted on climate-related disclosure rules for listed companies and certain regulated firms

The Financial Conduct Authority (FCA) has published its new proposals on climate-related disclosure rules for listed companies and certain regulated firms, following its latest consultation.

The regulator’s proposals follow the latest climate-related disclosure rules for the most prominent listed commercial companies in December 2020, which follow the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).

Among the FCA’s proposals are an extension to the application of its TCFD-aligned listing rule for premium-listed companies.

Furthermore, the regulator is proposing that TCFD-aligned disclosure requirements should be introduced for asset managers, life insurers, and FCA-regulated pension providers.

Sheldon Mills, the executive director of consumer and competition at the FCA, said: “The climate change challenge affects the whole of society. It is vital that the financial services sector plays a leading role in addressing this challenge.

“Managing the risks of climate change and transitioning to a cleaner and less carbon-intensive economy will require high quality information on how climate-related risks and opportunities are being managed throughout the investment chain.”

He added: “However, climate-related disclosures do not yet meet investors’ and market participants’ needs. The new rules will help markets, investors and ultimately consumers better understand the impact of climate change and make more informed decisions.”

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