Ahead of COP26 ─ the 26th United Nations Climate Change conference, running from 1-12 November ─ the FCA has published consultation paper (CP 21/17) on the implementation of mandatory Task Force on Climate-Related Financial Disclosures (TCFD) disclosures. For many firms, data gathering requirements start from 1 January. We outline the considerations for firms in scope.
Ahead of COP26 in November 2021, the FCA has published its long-awaited consultation paper (CP 21/17) on the implementation of mandatory TCFD disclosures. Data gathering for asset managers and asset owners, beginning for some in-scope firms on January 1, with the first round of reporting for those in-scope firms taking place prior to June 2023.
The FCA’s proposals aim to increase transparency for consumers and clients, encourage firms to apply deeper considerations of climate-related risks, and support information along the investment chain. The goal will ultimately provide greater reporting on the investment risk and opportunities associated with the physical and transitional risk associated with climate change, and further support the Government’s agenda to transition to a net zero economy by 2050.
The new regulatory disclosure requirements aim to adopt the existing framework of the TCFD and will integrate these standards in a new ‘ESG’ specific section set out of the FCA’s Handbook which, the consultation paper states, will be expected to be expanded to include additional ‘ESG’ regulation with time.
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