Press release: 6 January 2021
Media reaction: New UK Financial Conduct Authority Policy Statement
On 21 December, the UK Financial Conduct Authority published a new Policy Statement. This followed a consultation where the FCA sought to enhance climate-related disclosures and clarify existing disclosure obligations for companies.
Climate Finance Lawyer Daniel Wiseman said:
“The UK Financial Conduct Authority’s new Policy Statement will be a wake-up call for many companies that still have their head in the sand when it comes to disclosing and mitigating climate change risk.
“The FCA’s Technical Note, which applies immediately, clarifies that all listed entities should disclose material risks and impacts associated with the Paris Agreement goals and the UK’s commitment to net-zero greenhouse gas emissions by 2050.
“Investors have been demanding more detail about how business strategies and financial accounts are aligned with climate goals. This is a clear materiality signal, which means that companies should already be disclosing detailed information on these points to satisfy existing requirements.
“However, the FCA has missed a key opportunity to make TCFD and Paris-aligned reporting mandatory for all listed companies. To ensure consistency for climate disclosures and minimize risks of greenwash – this must be a top priority for 2021.”
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