The FCA announced it has published proposals outlining new climate-related disclosure requirements for premium listed issuers.

The regulator said the new rule will require all commercial companies with a premium listing to either make climate-related disclosures consistent with the approach set out by the Taskforce on Climate-related Financial Disclosures (TCFD), or explain why not. The FCA added it would consider consulting on extending the rule to a wider selection of issuers.

The FCA indicated it recognises that both standards for disclosure as well as firms’ understanding of the financial impacts of climate change are evolving – and added that for this reason, where companies are not yet able to make full disclosures, they should provide an explanation of the reasons why.

FCA chief executive, Andrew Bailey, said: “Climate change presents a serious and wide-ranging threat to global economic prospects, society more broadly and our natural environment.

“The changes we propose will help to provide the transparency the market needs to be able to assess how well companies are adjusting to the risks of climate change. Improved disclosures will support better asset pricing and enable investors to make more informed choices about where to allocate their capital – which will ultimately support the transition to a low carbon economy.”

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