{"id":6954,"date":"2023-03-06T14:05:55","date_gmt":"2023-03-06T14:05:55","guid":{"rendered":"https:\/\/iqeq.com\/?p=6954"},"modified":"2023-08-16T15:15:32","modified_gmt":"2023-08-16T15:15:32","slug":"uk-asset-managers-climate-disclosure-deadlines-are-fast-approaching","status":"publish","type":"post","link":"https:\/\/iqeq.com\/insights\/uk-asset-managers-climate-disclosure-deadlines-are-fast-approaching\/","title":{"rendered":"UK asset managers \u2013 climate disclosure deadlines are fast approaching"},"content":{"rendered":"
\n
\n

The 30 June 2023 deadline for the first disclosures by the largest asset managers is now fast approaching under new Financial Conduct Authority (FCA) rules requiring mandatory climate-related financial disclosures. Here, we provide a run-down of everything UK asset managers need to know about these upcoming requirements.<\/p>\n

The new rules are aligned with the recommendations of the international\u00a0Task Force on Climate-related Financial Disclosures<\/a>\u00a0(TCFD), established to create a global standard for the information required by market participants to assess and price climate-related risks and opportunities.<\/p>\n

The UK adopts a more focused approach than the EU<\/h2>\n

In aligning its new disclosures with the TCFD recommendations, the UK is providing a globally-standardised framework focused solely on climate-related metrics. Meanwhile, the EU\u2019s Sustainable Finance Disclosure Regulation (SFDR) aligns to the UN General Assembly\u2019s 2030 Agenda for Sustainable Development, which has a much broader scope of still-developing ESG indicators and metrics without reference to the TCFD.<\/p>\n

The adoption of the TCFD framework by the UK not only represents a more focused approach, but can also be regarded as more pragmatic than the EU approach because the TCFD is increasingly being adopted by investee companies (listed and private), providing the necessary data in annual financial statements that asset managers rely on to compile their own product or portfolio level disclosures.<\/p>\n

As the UK did not adopt SFDR before leaving the EU, this is a major post-Brexit divergence in financial regulation policy-making. There is no obligation for UK asset managers to comply with SFDR unless they are marketing to EU investors using the National Private Placement Regime (NPPR).<\/p>\n

In-scope firms<\/h2>\n

The FCA rules apply to certain categories of firm as set-out in\u00a0ESG 1.2.1 R<\/a>. The following firms currently fall within the \u2018asset managers\u2019 category:<\/p>\n