The FCA has today published proposals outlining new climate-related disclosure requirements for premium listed issuers.
The new rule will require all commercial companies with a premium listing to either make climate related disclosures consistent with the approach set out by the Taskforce on Climate-related Financial Disclosures (“TCFD”) or explain why not. The FCA will consider consulting on extending this rule to a wider scope of issuers.
The proposals set out in the Consultation Paper build upon the recommendations of the TCFD, an existing global standard.
The FCA is also seeking feedback on clarifications to how existing requirements applicable to all listed companies already require climate- and other sustainability-related disclosure.
Speaking on the subject, Andrew Bailey, FCA Chief Executive, said: ‘The changes we propose will help to provide the transparency the market needs to be able to assess how well companies are adjusting to the risks of climate change. Improved disclosures will support better asset pricing and enable investors to make more informed choices about where to allocate their capital – which will ultimately support the transition to a low carbon economy.’
The FCA is also currently considering how best to enhance climate-related disclosures by regulated firms, including asset managers and life insurers, to ensure a coordinated approach. The FCA is working closely with Government and other regulators, including through a Taskforce established by the Treasury under the Government’s Green Finance strategy.