UK Climate Disclosure: Impact on Asset Managers & Financial Institutions

Key takeaways:

The FCA recently announced a proposal for a climate-related financial disclosure regime for UK asset managers as well as life insurers and FCA regulated pension providers. The proposal aligns to similar disclosure requirements for UK occupational pension schemes, which come into effect later this year.
This is an important step in the United Kingdom’s implementation of a regime that is similar to the European Union’s Sustainability Finance Disclosures Regulation (“SFDR”), although the United Kingdom’s regime for the time being focuses exclusively on climate-related disclosure, whilst the European Union’s regime encompasses environmental, social and governance considerations.