CP21/18: Enhancing climate-related disclosures by standard listed companies

Open consultation: CP21/18
Consultation closed

We consulted on proposals to extend the application of our climate-related disclosure requirements to issuers of standard listed equity shares. We also sought views on select environmental, social and governance (ESG) topics in capital markets.

Read CP 21/18 (PDF)

Why we consulted

Effective capital markets rely on good corporate disclosures. High-quality information on companies’ exposure to climate-related risks and opportunities is increasingly seen as crucial to informed asset pricing and allocation of capital to support the transition to a net zero economy. 

Improving climate-related disclosures along the investment chain is therefore central to our sustainable finance strategy. 

Who this CP applies to

Our proposals will directly affect issuers of standard listed equity shares (excluding standard listed investment entities and shell companies) and may also impact issuers of other listed securities. Our CP and discussion chapter will also interest a wide range of stakeholders, including:

  • law firms, corporate finance and other advisors 
  • investors and asset owners
  • accountants, auditors and second party opinion providers
  • ESG data and rating providers
  • industry groups, trade associations, civil society groups, industry experts and academics 
  • regulated firms
  • policymakers and regulatory bodies

Background to the CP

In December 2020, we implemented a new disclosure rule for commercial companies with a UK premium listing, referencing the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). Our rule was finalised in PS20/17, following a consultation process during 2020 (CP20/3).

The measures we propose in this CP extend the application of these requirements to a wider scope of listed issuers. This is consistent with commitments in the Roadmap towards mandatory climate-related disclosures, published by a cross-government and regulators taskforce in November 2020.

Background to the discussion topics

We have also included a discussion component in this CP (Chapter 4). We aren’t proposing rule changes, but instead asking for views on select ESG topics in capital markets.

We are specifically looking to generate discussion and engage stakeholders on:

  • issues related to green, social or sustainable debt instruments
  • ESG data and rating providers

Next steps

This consultation has now closed. We will publish feedback on responses and issue a Policy Statement once we have reviewed your comments.

We will separately consider responses to our discussion chapter and issue a Feedback Statement in due course. The feedback received will inform our further work in this area.