FCA introduces rule to enhance climate-related disclosures

Dec 23, 2020


The UK's financial regulatory body, the Financial Conduct Authority (FCA) has confirmed that it would enforce a rule for premium-listed companies, including advice firms, that mandates better disclosure around climate-related risks and opportunities.

In a policy statement published on 21 December, the FCA announced that the new rule will require firms to include a statement in their annual financial report setting out whether they have made disclosures consistent with the recommendations made by the Taskforce on Climate-related Financial Disclosures.

If the company does not provide the information consistent with the TCFD's recommendations, it must explain why it has not done so, and provide a plan for providing such disclosure in the future.

The rule will apply for accounting periods beginning on or after 1 January 2021.