The Financial Conduct Authority (FCA) has dropped its plans to introduce mandatory climate-related financial disclosures for listed companies.

In its final Policy Statement PS26/19, the FCA dropped its proposal to enforce mandatory climate reporting. Instead, the FCA will implement a more flexible ‘comply or explain’ framework across the new UK Sustainability Reporting Standards (UK SRS).

The UK is not alone in recent watering down of climate related measures on companies, with the EU and in particular the US seeing considerable halting or roll-back of regulations.

Commenting on the FCA’s decision, UKSIF CEO James Alexander said, “While it’s disappointing to see a shift away from mandatory reporting under the climate standard, we hope to see companies produce high-quality reporting under the ‘comply or explain’ approach.”

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