The Financial Conduct Authority on Friday proposed simplifying climate reporting for investment products, estimating the changes could save firms around £20 million a year.
Under the proposals, detailed product-level reports based on the Task Force on Climate-related Financial Disclosures (TCFD) would be replaced with narrower disclosures for retail investors focused on material climate risks.
Institutional clients would still be able to request key emissions data, but firms would no longer need to publish full product-level reports.
The FCA said a review of the current regime found that while the rules improved firms’ awareness of climate risks, product-level reports were often seen as too complex by investors and not widely used.
“As part of being a smarter, more proportionate regulator, we’re cutting complexity in our rules for asset managers, while keeping the focus on clear, useful information for investors,” said Michelle Beck, director of wholesale buy-side at the FCA.
The consultation runs until 13 July 2026, with the FCA aiming to finalise the rule change in the autumn.
The £20 million estimate is based on industry feedback on reporting costs and a voluntary survey of a sample of firms. TCFD product reporting was introduced in 2021 as part of the UK’s climate disclosure framework.
