FCA consults on companies’ sustainability disclosures

The Financial Conduct Authority (FCA) is consulting on the rules regarding listed companies’ sustainability disclosures, seeking feedback on alignment with international standards, robust information around sustainability risks and how to encourage more transparency.

In an announcement, the FCA said given the end of the Task Force on Climate-related Financial Disclosures (TCFD), which was disbanded in 2023, and the transition to ISSB standards, the industry must consider how rules need to evolve.

To promote international alignment and comparability, the UK government is currently developing the UK Sustainability Reporting Standards (SRS) to endorse the ISSB standards for use in the UK, but with some variations.

See also: Industry steps up calls for improved sustainability disclosure regime

The FCA said: “Following the government’s consultation on the draft UK SRS, we are consulting on replacing our current TCFD-aligned listing rules with requirements for in-scope listed companies to report against these standards. We want to strike the right balance between enhancing transparency and maintaining proportionality by proposing a ‘comply or explain’ approach for some of the more challenging or new aspects of reporting.”

The regulator’s proposals are designed to:

• Promote international alignment of sustainability disclosures.
• Increase transparency.
• Boost the quantity, quality and comparability of financially material information.

Feedback is invited by emailing cp26-5@fca.org.uk by 20 March 2026.

After feedback is reviewed, the FCA plans to publish a policy statement in autumn 2026, with rules coming into force from 1 January 2027.

See also: The future direction of the UK’s Sustainability Disclosure Regime