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

Targets 90% Scope 3 reduction

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...