The FCA has published proposals on climate-related disclosure rules for listed companies and specific regulated firms.
The regulator is seeking views on its proposals, which include extending the application of its Taskforce on Climate-related Financial Disclosures (TCFD) to encompass issuers of standard listed equity shares; and introduce TCFD-aligned disclosure requirements for asset managers, life insurers and FCA-regulated pension providers.
According to the FCA, the global reach of regulated companies that operate in the UK has dictated the design of the regime to accommodate the ranging business models and retain international consistency.
The FCA is also seeking views on topical environmental, social and governance issues facing capital markets.
Sheldon Mills, executive director of consumer and competition at the FCA, 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.”
The consultation period will run until September 10 2021 and the regulator will confirm its final policy on climate-related disclosures before the end of the year. The views collated on ESG topics in capital markets will form part of a feedback statement in the first half of 2022, the FCA said.