Britain's Financial Regulator Scales Back Corporate Climate Rules

Britain's financial regulator, the Financial Conduct Authority, has dropped plans to require listed companies to inform investors about their climate risks. The decision follows concerns from firms about implementation costs and competitiveness. The regulator had proposed requiring companies to meet a new UK climate standard, but has instead allowed them to maintain the "comply or explain" approach. This move comes after the European Union watered down its corporate climate disclosure regime and the US Trump administration ditched plans for climate rules. The FCA cited feedback questioning whether mandating the UK SRS S2 climate standard would be proportionate and support international competitiveness. The regulator first introduced climate-related risk disclosure rules in 2020, which were later extended to other listed issuers. A review of FTSE 350 companies' annual reports found that 92% complied with the TCFD framework.