The FCA has published a discussion paper (DP18/8) on climate change and green finance. The discussion paper outlines how the impacts of climate change are relevant to the FCA’s statutory objectives of protecting consumers, protecting market integrity and promoting competition. Among other things, the FCA consults on addressing the recommendations of the Law Commission’s report on Pension Funds and Social Investment, disclosures by issuers of securities admitted to trading on a regulated market and the introduction of a requirement for financial services firms to report publicly on how they manage climate risks and the content of those reports. The deadline for responding to the questions in the discussion paper is 31 January 2019.
The FCA notes that institutional investors are considering climate change-related issues and asset managers are increasingly being given climate change mandates. Therefore, readily available, reliable and consistent disclosures about climate change issues would ensure that those making investment decisions have accurate information to help them. The FCA and the PRA are setting up a Climate Financial Risk Forum which is designed to manage financial risks from climate change and to support the innovation for green financial services and products.