Introduction to the FCA's TCFD-aligned Disclosure Regime
Background
The Task Force on Climate-related Financial Disclosures (TCFD) was set up in 2015 by the Financial Stability Board.
In 2017, the TCFD released its final recommendations and supporting recommended disclosures, which create a framework to help organisations more effectively disclose climate-related risks and opportunities, thereby enabling better informed capital allocation by investors, lenders and insurers.
In November 2020, the Chancellor announced the UK's intention to make TCFD-aligned disclosures mandatory across the UK economy by 2025.
In December 2021, the FCA published its finalised rules for a climate-related financial disclosure regime for asset managers, consistent with the TCFD's recommendations.
The new TCFD-aligned disclosure rules require entity-level disclosures and product-level disclosures. For the largest firms (those with assets under management of £50 billion or more), the rules came into force on 1 January 2022. They will be required to publish their first disclosures by 30 June 2023. Firms with assets under management of £5 billion or more became subject to the regime from 1 January 2023, with first disclosures required by 30 June 2024.
This session will provide an introduction to the FCA's TCFD-aligned disclosure rules and consider the practical steps that investment management firms should take to implement the requirements.
