UK regulator calls for feedback on climate disclosure rules
23 June 2021 UK
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The Financial Conduct Authority has published new guidelines relating to climate disclosures for UK listed companies.
These build on rules introduced in December 2020, applicable to the most prominent listed commercial companies in the UK, which uphold many of the recommendations of the Taskforce on Climate-related Financial Disclosures.
In its latest proposals, which are subject to consultation, the UK watchdog has advised that coverage under these disclosure rules be extended from premium-listed commercial companies to include issuers of standard listed equity shares.
These also propose that a disclosure obligation be introduced for asset managers, life insurers and pension providers that fall under the FCA’s supervisory responsibility.
The authority has called for industry feedback on these proposals by 10 September 2021.
These provisions form part of wider FCA consultation on ESG standards in capital markets, including green and sustainable debt markets and the role played by ESG data and ratings providers.
FCA executive director of consumer and competition Sheldon Mills says: “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.
“Climate-related disclosures do not yet meet investors’ and market participants’ needs,” says Sheldon. “The new rules will help markets, investors and ultimately consumers understand the impact of climate change and make better informed decisions.”
The FCA recently published a “remit letter” defining responsibilities that it should bear regarding the government’s commitment to move to a net-zero economy by 2050.
These build on rules introduced in December 2020, applicable to the most prominent listed commercial companies in the UK, which uphold many of the recommendations of the Taskforce on Climate-related Financial Disclosures.
In its latest proposals, which are subject to consultation, the UK watchdog has advised that coverage under these disclosure rules be extended from premium-listed commercial companies to include issuers of standard listed equity shares.
These also propose that a disclosure obligation be introduced for asset managers, life insurers and pension providers that fall under the FCA’s supervisory responsibility.
The authority has called for industry feedback on these proposals by 10 September 2021.
These provisions form part of wider FCA consultation on ESG standards in capital markets, including green and sustainable debt markets and the role played by ESG data and ratings providers.
FCA executive director of consumer and competition Sheldon Mills says: “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.
“Climate-related disclosures do not yet meet investors’ and market participants’ needs,” says Sheldon. “The new rules will help markets, investors and ultimately consumers understand the impact of climate change and make better informed decisions.”
The FCA recently published a “remit letter” defining responsibilities that it should bear regarding the government’s commitment to move to a net-zero economy by 2050.
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