U.K. Plc Faces New Climate Change Reporting Rule Next Year
The U.K.’s market watchdog is introducing rules requiring the majority of the U.K.’s listed companies to make better disclosures about how climate changes affects their business.
The Financial Conduct Authority intends to introduce a new rule for reporting periods beginning Jan. 1, the regulator’s Chief Executive Officer Nikhil Rathi said Monday at the Green Horizon Summit conference in London.
The rule will cover firms making up two-thirds of the market value of U.K.-listed equities, Rathi said. Initially, firms will need to comply with the requirements or explain why they cannot. The FCA will consider making the rules mandatory in the future.
“We want green and sustainable finance to be at the heart of the continued growth of London as a global financial center,” Rathi said.
The U.K. is planning to “at least match the ambition” of the European Union’s moves to promote sustainable finance to help combat climate change, Rathi said.
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