The United Kingdom backed away from mandatory climate reporting
The British regulator FCA published the final rules (PS26/19) on September 30 and kept the “comply or explain” principle for listed companies – either disclose the information or explain why you don’t.
Back in January, the regulator even proposed that the UK SRS S2 standard (the British version of the ISSB climate standard) become mandatory. He/she backed down due to comments on costs, proportionality and the competitiveness of the London Stock Exchange.
So what is changing:
- UK SRS will replace the existing TCFD-based rules, effective from 2020
- the obligation applies to financial periods starting 1 January 2027, with the first reports due in 2028
- “comply or explain” applies to the entire framework, including climate
- transitional reliefs: 1 year for Scope 3, 2 years for broader sustainability information
Interesting fact: according to the FCA, 92 % of FTSE 350 companies have already disclosed climate risks for 2025.
Britain thus follows the trend – the EU has streamlined the CSRD via the Omnibus, and the USA has stepped back from federal climate rules.
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