'We need to strengthen our analysis': FCA inaugural climate disclosure report

Targets 90% Scope 3 reduction

Tom Higgins
clock • 3 min read
The disclosure report is structured around the four pillars of the TCFD recommendations: governance; strategy; risk management and metrics.
Image:

The disclosure report is structured around the four pillars of the TCFD recommendations: governance; strategy; risk management and metrics.

The Financial Conduct Authority has for the first time published its own climate-related financial disclosure report, with the regulator admitting it faces a range of risks if it does not "walk the walk" on climate change.

Published 19 July, the report said the FCA is in a "strong position" to meet its 2050 net-zero expectation, but challenges exist in utilising risk management frameworks and calculating Scope 3 emissions. The FCA report follows new rules introduced in January 2021 on climate-related disclosures for listed companies, asset managers and FCA-regulated asset owners since January 2021. The Task Force on Climate-Related Financial Disclosures (TCFD) framework is aimed at private sector organisations, but the FCA stated its pillars and recommendations can be applied to inform climate-related fina...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on ESG

Demand for key inputs will rise sharply, as nations look to accelerate their renewables programmes.
ESG

Greenflation: What are the drivers and how long will it last?

Metal price rises 'structural'

clock 12 August 2022 • 3 min read
Invests in companies with strong biodiversity credentials.
ESG

HSBC launches biodiversity screened ETF

SFDR Article 8

clock 11 August 2022 • 1 min read
Charles Radclyffe of EthicsGrade
ESG

Avoid the watermelons: Time to think differently about ESG

Focus on investor needs

Charles Radclyffe
clock 10 August 2022 • 4 min read
Trustpilot