UK regulator abandons mandatory climate disclosures for listed companies
EWU•Britain's Financial Conduct Authority dropped plans to require listed companies to disclose climate risks, allowing them to continue using a “comply or explain” approach. The regulator found 92% of FTSE 350 companies complied with existing climate-disclosure rules in their 2025 annual reports.
1. Disclosure plans dropped
The Financial Conduct Authority said companies would not be required to meet the UK-endorsed climate standard, UK SRS S2, and could instead maintain the “comply or explain” approach. The proposed rules covered financially material climate-related risks and opportunities, climate targets and the potential impact of climate change on businesses.
2. Firms raised concerns
Feedback questioned whether mandating the standard would be proportionate and support the international competitiveness of companies operating in the UK. The FCA introduced climate-disclosure rules in 2020 for premium-listed companies, later extending them to other categories of listed issuer.
