Sustainable Disclosure Rules for Listed Companies
The UK Financial Conduct Authority (FCA) releases sustainable disclosure rules for listed companies, aiming to provide regulatory requirements that are consistent with the UK Sustainability Reporting Standards for listed companies.
The UK FCA introduced climate disclosure rules for listed companies in 2020 and improved the interoperability of information disclosure after the establishment of the International Sustainability Standards Board (ISSB) in 2021.
Related Post: UK FCA Sets Out Temporary Measures for Sustainability Disclosure Requirements
Core: Comply or Explain Principle
UK listed companies fully adopt the Comply or Explain principle for sustainable disclosure, allowing listed companies to provide high-quality sustainable information based on their business models, strategies, and risk profiles. Both S1 non climate disclosure and S2 climate disclosure will be based on this principle to improve the efficiency of investors in using sustainable information.
The sustainable disclosure rules for listed companies apply to the following categories of issuers:
- Commercial company category.
- Transition category.
- Non equity shares or non-voting equity shares category.
- Secondary listing or deposit receipts category.
The new sustainable disclosure rules will officially come into effect on January 1, 2027, with the first disclosure taking place in 2028. For Scope 3 information disclosure, regulatory agencies provide a one-year exemption, and for non-climate disclosure, regulatory agencies provide a two-year exemption.
Reference:
PS26/19: Aligning Listed Issuers’ Sustainability Disclosures with International Standards
