The UK’s Financial Conduct Authority (FCA) has asked the nation’s premium-listed commercial companies to enhance their disclosures regarding climate in line with the global standard.
Under the proposed rule, firms refraining from following the guidelines of the Taskforce on Climate-related Financial Disclosure (TCFD) need to explain the reason for non-compliance.
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Moreover, the watchdog is planning to extend this rule to a broader range of companies.
FCA CEO Andrew Bailey said: “The changes we propose will help to provide the transparency the market needs to be able to assess how well companies are adjusting to the risks of climate change.
“Improved disclosures will support better asset pricing and enable investors to make more informed choices about where to allocate their capital – which will ultimately support the transition to a low carbon economy.”
Public consultation on the proposal completes on 5 June 2020.
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By GlobalDataIn recent years, an increasing number of companies have identified the significance of climate change and adapted their investment approach.
This January, AXA Investment Managers, BNP Paribas Asset Management, Mirova, and Sycomore Asset Management joined forces to develop a tool to measure biodiversity impact on investments.
Meanwhile, last month, financial indices provider Solactive invested in climate change start-up right.based on science.
Last year, MSCI entered into an agreement to buy climate risk analytics provider Carbon Delta.
