On 21 December, the Financial Conduct Authority (FCA) published proposals to enhance climate-related disclosures. This requires premium-listed issuers to comply with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and recommended disclosures or explain why they have not done so. The FCA are introducing a new rule requiring that, for accounting periods beginning on or after 1 January 2021, premium listed companies on the London Stock Exchange must include a statement in their annual financial report setting out:
- whether they have made disclosures consistent with the TCFD’s recommendations and recommended disclosures in their annual financial report;
- where they have not made disclosures consistent with some or all of the TCFD’s recommendations and/or recommended disclosures, an explanation of why, and a description of any steps they are taking or plan to take to be able to make consistent disclosures in the future – including relevant timeframes for being able to make those disclosures;
- where they have included some, or all, of their disclosures in a document other than their annual financial report, an explanation of why and where in their annual financial report (or other relevant documents) the various disclosures can be found.