For financial years starting on or after 1 January 2021, premium listed commercial companies will, as expected, have to make climate-related disclosures in their annual reports based on the framework established by the Task Force on Climate-related Financial Disclosures (TCFD). Disclosures will not be mandatory, but if a company does not include a disclosure then it will need to explain why. The first annual financial reports under the new rule will therefore be published in early 2022. This briefing discusses the implications of the new Listing Rule for companies.
For the time being, the new Listing Rule will not apply to premium segment investment companies or any standard segment companies. However, the FCA intends to consult in H1 of 2021 on extending the scope of the new rule. The consultation will also consider whether TCFD disclosures should be mandatory - i.e. whether the option to explain, rather than comply, should be removed.