Following a consultation ending in October 2020, the Financial Conduct Authority (FCA) has released a policy statement setting out its decision to introduce a new rule for commercial companies with a UK premium listing to make disclosures consistent with the Task Force for Climate-related Financial Disclosures (TCFD) recommendations.
This update follows the roadmap set out in November 2020 by a joint government regulator taskforce (of which the FCA is a member) towards mandatory TCFD-aligned disclosures across the whole economy over the next 5 years.
The rule, which will apply for accounting periods beginning on or after 1 January 2021, will require UK premium listed commercial companies to include a compliance statement in their annual financial report stating whether they have made disclosures consistent with the TCFD recommendations on a ‘comply or explain’ basis. Also included in the policy statement is guidance for companies on implementing the rule, as well as a Technical Note clarifying existing disclosure obligations for a wider scope of issuers.
The FCA states it is planning to publish a consultation paper in the first half of 2021 on proposals to extend the application of the rule to a wider scope of listed issuers, as well as a possible consultation on strengthening the compliance basis of the rule. The regulator will also be conducting a separate consultation on potential client-focussed TCFD-aligned disclosures by UK-authorised asset managers, life insurers and FCA-regulated pension schemes in early 2021.
If you need support or guidance with TCFD or any of the latest FCA requirements, please get in touch with firstname.lastname@example.org.