On 17 December 2021, the FCA published two Policy Statements confirming final rules and guidance to promote better climate-related financial disclosures.
Issuers of standard listed shares, or equity shares represented by certificates (global depositary receipts) must include a statement in their annual financial reports setting out whether their disclosures meet the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). If they don’t, they’ll need to explain why.
FCA-regulated asset managers and asset owners – including life insurers and pension providers – will have to disclose how they take climate-related risks and opportunities into account in managing investments. They’ll also have to make disclosures about the climate-related attributes of their products.
The rules will come into effect from 1 January 2022. Asset managers and asset owners will have a phased implementation, with the rules initially applying to the largest firms and coming into effect for smaller firms one year later.