Climate-related reporting requirements

Find out more about our TCFD-aligned reporting requirements, which companies and firms fall in scope of the rules, and our plans for extending the requirements. 

Financial markets rely on good disclosures to inform asset pricing and capital allocation. Asset managers also need reliable data on sustainability factors to build the environmental, social and governance (ESG) products that their clients and consumers demand, as well as for their own investment and risk management processes.  

That’s why one of our key priorities is to promote climate and wider sustainability-related financial disclosures right along the investment chain, from listed companies, to market participants, to the end-investors. 

Task Force on Climate-related Financial Disclosures (TCFD) reporting requirements 

In November 2020, a cross-Whitehall and regulator taskforce published an Interim Report and Roadmap, setting an indicative timeline for when commercial companies and financial services firms should expect to begin reporting against the TCFD’s recommendations.  

We focused initially on introducing TCFD-aligned disclosure rules for premium listed companies.

We consulted in CP21/18 on proposals to extend the application of the rule to issuers of standard listed equity shares (excluding standard listed investment entities and shell companies).

We are also taking our first step in introducing climate-related disclosure proposals for regulated firms. In CP21/17, we proposed introducing climate-related disclosure requirements aligned with the TCFD’s recommendations for:

  • asset managers 
  • life insurers 
  • FCA-regulated pension providers

UK listed commercial companies with a premium listing 

In December 2020, we introduced a rule for commercial companies with a UK premium listing. The rule states that in-scope firms must now disclose, on a comply or explain basis, against the recommendations of the TCFD. 

This new rule applies for accounting periods beginning on or after 1 January 2021. 

If your company falls within the scope of this rule, you must include a statement in your annual financial report setting out:  

  • whether you have made disclosures consistent with the TCFD’s recommendations and recommended disclosures in your annual financial report 
  • where you have included some, or all, of your disclosures in a document other than your annual financial report, an explanation of why and a reference to where the disclosures can be found 
  • where you have not made disclosures, an explanation of why, and a description of any steps you are taking or plan to take to be able to make consistent disclosures in the future – including relevant time frames 

Find out more about the disclosure requirement  

FCA disclosure regime for ESG matters  

A wide range of factors may impact a company’s prospects and its enterprise value. This includes climate-related risks and opportunities, but wider ESG-related matters are also increasingly financially material for many issuers. These matters may therefore need to be disclosed.  

The following firms are subject to a range of disclosure requirements. If your firm falls into this group, you may need to consider ESG-related risks and opportunities when determining what to disclose: 

  • listed issuers 
  • other issuers with securities admitted to trading on regulated markets 
  • other entities in scope of requirements under the Market Abuse Regulation (MAR) and the Prospectus Regulation 

Issuers should consider ESG matters carefully when determining what should be disclosed under the Prospectus Regulation, MAR and other aspects of our disclosure regime. 

Find out more about the specific FCA Handbook requirements and obligations in our Technical Note on disclosures in relation to ESG matters. 

Page updates

03/11/2021: Editorial amendment Background content moved to main page.
24/06/2021: Information added CP21/17 and CP21/18