Financial Conduct Authority publishes review of climate reporting

The FCA has set out the findings and next steps following its review into firms' climate reporting in line with its rules.

The review collated the views of asset managers, life insurers and FCA-regulated pension providers and looked at how the FCA’s climate disclosure rules had been working and firms’ views on the regime. 

Overall, the FCA found that its rules have increased firms’ consideration of climate risks and supported their integration into firms’ decision-making. Firms were more transparent with their clients and consumers but encountered some challenges with the availability of data and consistent, well-developed methodologies. 

Following the review, the FCA has updated its sustainability reporting requirements to clarify how firms in scope of both its Taskforce on Climate-related Financial Disclosures (TCFD) and Sustainability Disclosure Requirements rules can report efficiently under both regimes.