Standard-listed companies to make climate-related disclosures under FCA proposals
The Financial Conduct Authority has published a consultation paper with proposals to extend reporting in line with the recommendations of the Task Force on Climate-related Financial Disclosures to issuers of standard listed equity shares.
This forms part of the UK's ambition to roll out mandatory TCFD reporting across the economy by 2025, with most of the measures expected to be introduced by 2023 (see here).
A new Listing Rule 9.8 was introduced in December 2020 and requires premium-listed companies to include a statement in their annual report about whether they have made disclosures about their exposure to climate change risks and opportunities in line with the recommendations of the TCFD. The new rule applies on a 'comply or explain' basis, to financial years beginning on or after 1 January 2021.
The FCA is now proposing to extend that rule (and accompanying guidance) to standard listed companies (i.e. issuers of standard listed equity shares, excluding standard listed investment entities and shell companies).
For more details on the proposals in relation to standard listed companies, see the blog post from the Environment & Climate Change team here.
The FCA has also proposed to extend mandatory TCFD reporting to asset managers, life insurers and FCA-regulated pension providers, covered in a separate consultation paper. Click here for the blog post by the FRG team for more details on this publication, which is also available as a briefing note on the Client Knowledge Portal.