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FCA Introduce Climate-Related Disclosure Requirements

 

The Financial Conduct Authority (FCA) has introduced climate-related disclosure requirements for FCA-regulated asset managers and asset owners. This means that the relevant organisations will need to publish annual reports, in line with TCFD recommendations, regarding their consideration of climate-related matters, risks, and opportunities and the climate-related attributes of their portfolios and products.

From the beginning of this year, larger organisations fall under these new disclosure requirements, with smaller firms to follow in 2023.

 

 

How to Comply

 

In-scope firms will need to produce both entity and product/portfolio-level reports concerning how climate-related risks and opportunities are considered when administering and managing investments.

On an entity-level, firms will need to produce a TCFD report annually, which must be published in a prominent place on their website. The report will need to cover risk management, metrics and targets, strategy, and governance.

On a portfolio/product level, firms will also need to produce an annual, TCFD-aligned report, which must be published in a prominent place on their website. The report must present TCFD disclosures, including a core set of climate-related metrics, on the organisation’s portfolios/products.

Our experts are ready to advise you on how to comply with these new requirements, and are well versed in applying the TCFD recommendations to produce clear and insightful risk registers and disclosure reports. Our digital framework also provides an efficient and effective toolkit to measure and record the Scope 1, 2 and 3 greenhouse gas emissions that must be disclosed under the TCFD.

Contact us today at [email protected] to ensure your organisation is on track to disclose.

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