Proposed climate-related disclosures in 2021

Proposed climate-related disclosures for standard listed companies:

As part of the UK Government’s roadmap for mandatory weather reporting on the UK economy until 2025, the FCA proposes to extend the application of its new weather reporting requirements to standard broadcasters. The FCA is also seeking information on the integration of ESG into the UK capital market.

 These changes are welcomed by the market because investors/stakeholders and institutional investor organizations place more emphasis on climate annual reports on climate change announcements.

background

The FCA recently released disclosure requirements for UK annual financial reporting and foreign trade firms with a premium list on a premium list under the Financial Force Stability Board on Climate Financial Information (TCFD) framework, the framework for financial change reporting leaders, as early as January. 1, 2021 or later.

Separately, the UK government advised on disclosing the financial environment for large UK companies, including AIM-listed companies with more than 500 employees and the UK and LLP companies with more than 500 employees and a turnover of more than £ 500 million. This consultation ended on 5 May with the amendment of the legislation introduced in 2021 and applicable to the years beginning on 6 April 2022.

to introduce

Under the proposals, standard-listed issuers, regardless of where they are incorporated (excluding listed standard collective investment schemes and shell companies), must include a statement in their financial statements for periods beginning on or after January 1, 2022.

• reported in accordance with the recommendations of the TCFD and the recommended disclosure in its annual financial report;

• if they have not communicated with some or all of the TCFD recommendations and/or recommended disclosures, a reason and description of the steps they are taking, or if they intend to adopt consistent communication and timeline to ensure that it is complied with;

• if they have included some or all of their information against TCFD recommendations and/or recommended information in a document other than their annual financial report, an explanation of why; To be

• where you can find more information in the annual financial report (or another document).

These changes reflect the new requirements for listed issuers and will extend the scope of the FCA’s disclosure requirements to another 148 companies (half of which are active in the basic resource, financial services, and energy sectors). These are areas where investors are very interested in climate strategies, including their transition plans.

The FCA also wants to extend these rules to standard-listed GDR issuers (under LR 18), which will get another 170 issuers.

In addition to these tips, the FCA is:

• Analyze other current ESG issues in UK capital markets, including green and sustainable debt markets and the growing role of ESG ratings and data providers. For example, there should be more guidelines for companies on the use of ESG ratings and the introduction of a voluntary code of conduct; To be

• Disclosure requirements under the TCFD for FCA-regulated wealth managers, life insurers, and pension institutions.

FCA Consultation Document: The consultation will close on 10 September 2021 and the final rules will be published by the end of 2021. FCA will issue a separate feedback statement on ESG issues.

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