UK Regulator Consults on Enhancing Climate-Related Disclosures by Certain Issuers

The U.K. Financial Conduct Authority has published a consultation paper on proposals to enhance climate-related disclosures by listed issuers and to clarify the existing disclosure obligations of issuers in relation to climate, environmental, social and governance matters. The FCA proposals would implement the disclosure recommendations of the Financial Stability Board's Taskforce on Climate-related Financial Disclosures. Responses to the consultation may be submitted until October 1, 2020. The FCA is proposing:
 

1. A new rule requiring commercial companies with a U.K. premium listing to confirm in their annual financial report whether they comply with TCFD-aligned disclosures and to explain any non-compliance. The FCA is not yet proposing to require disclosures given that many issuers are still establishing their capabilities to make these new types of disclosures. The proposed rule would apply to regulated financial services firms, such as asset managers, where they act as issuers as well as sovereign-controlled issuers.
2. New guidance to clarify where existing EU legislation and FCA rules require issuers to disclose climate-related, environmental, social and governance matters. The guidance would be relevant for all issuers, including, for example, listed issuers, issuers with securities admitted to trading on a regulated market and certain entities subject to the EU Market Abuse Regulation and EU Prospectus Regulation.

The FCA is monitoring developments in this area. It will consult in the future on expanding the scope of the proposed new rule on disclosures.

View the FCA's consultation paper on climate-related disclosures by listed issuers.
 
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