CP20/3: Proposals to enhance climate-related disclosures by listed issuers and clarification of existing disclosure obligations

Open consultation: CP20/3
Consultation closes

We are consulting on proposals to improve climate change related financial disclosures by listed issuers.

Show CP20/3 (PDF)

Why we are consulting

We are proposing to introduce a new rule for commercial companies with a UK premium listing, requiring them to state whether they comply with the recommendations of the Financial Stability Board’s Taskforce on Climate-related Financial Disclosures (TCFD) and to explain any non-compliance. We are also consulting on guidance on existing obligations set out in EU legislation and in our Handbook that may already require issuers to disclose information on climate-related and wider environmental, social and governance (ESG) matters under certain circumstances. 

Who this applies to

Our proposed new rule promoting adoption of the TCFD’s recommendations will directly affect commercial companies with a UK premium listing. The Technical Note on which we are also consulting impacts a wider scope of issuers, including:

  • listed issuers
  • 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 (PR)

This consultation will also be of interest to: 

  • sponsors of listed companies 
  • corporate finance and other advisers 
  • accountants and auditors
  • consumer groups and individual consumers
  • industry groups, trade bodies and civil society groups
  • regulated firms
  • investors
  • policy-makers and regulatory bodies
  • industry experts and commentators
  • academics and think tanks

Respond to our consultation

We are asking for comments on this Consultation Paper (CP) by 1 October 2020.

Online response form

You can also:

  • email your responses to [email protected] or
  • write to: Federico Cellurale, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN

Next steps

We will consider the feedback received and engage directly with stakeholders on these matters. Subject to the feedback received, we aim to publish a Policy Statement, along with the finalised rules and Technical Note, later in 2020.

Background to this consultation

Climate change threatens to have a significant and complex impact on most, if not all, listed companies. Climate change itself, or policy responses to climate change, may impact the value of companies’ assets and prospective profits directly or indirectly because of changes to how their businesses are operated.

Increasingly, investors want to commit their money to companies and projects that will support the transition to a low-carbon economy. 

Greater transparency about how issuers of listed securities may be impacted by climate-related risks and opportunities will help to ensure that securities are more accurately priced and help markets to work well. This will in turn allow investors to allocate capital more effectively to accelerate the transition. We consider that climate-related risks and opportunities are relevant to all companies, and likely to be material for most. In this Consultation Paper, we are therefore proposing measures to increase transparency.

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17/03/2020: Information changed Consultation closing date extended