The FCA has published new proposals on climate-related disclosure rules for listed companies and certain regulated firms.
The proposals follow the introduction of climate-related disclosure rules for the most prominent listed commercial companies in December 2020.
They are in line with the recommendations of the Taskforce on Climate-Related Financial Disclosures (TCFD).
The regulator is proposing to extend the application of its TCFD-aligned listing rules for premium-listed commercial companies to issuers of standard listed equity shares.
It is interested to hear from stakeholders including law firms, corporate finance and other advisers.
The FCA also proposes to introduce TCFD-aligned disclosure requirements for asset managers, life insurers and FCA-regulated pension providers.
Firms would be required to publish an annual report on how they take climate-related risks into account on behalf of clients and consumers.
They would also be required to produce annual disclosures in respect of their products and portfolios, including a core set of metrics.
It hopes that the proposed rules will help to make sure that the right information on climate-related risks and opportunities is available along the investment chain.
The regulator is inviting feedback to both consultations by 10 September 2021. Its final policy on climate-related disclosures will be confirmed before the end of the year.
These measures should help encourage investment in more sustainable projects and activities.
The regulator aims to meet the chancellor’s expectation that the FCA should “have regard” to the government’s commitment to achieve a net-zero economy by 2050.
FCA executive director of consumer and competition Sheldon Mills 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.
“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.”
Alongside these proposals, the FCA is also seeking views on other topical ESG issues in capital markets.
That includes green and sustainable debt markets and the role of ESG data and rating providers.
The FCA will separately consider stakeholder views on the ESG-related discussion topics in capital markets. A feedback statement should be published in the first half of 2022.
Just another measure to ensure that foreign firms will get the investment instead of the UK. Since June 2016 (The brexit result) the FTSE All Share has made 17%. The Dow has made 90% and the Eurotop has made 25.6%. I’ll bet that thse markets don’t have to put up with this nonsense.