UK's FCA Scraps Mandatory Climate Reporting Rules for Listed Companies

The Financial Conduct Authority abandoned plans on Wednesday to mandate climate risk disclosure for UK-listed companies, opting instead to retain existing "comply or explain" guidelines, the regulator announced on October 1, 2026. The decision comes amid a global retreat from climate finance rules. Under the Trump administration, the US Securities and Exchange Commission has scrapped similar requirements, and several US states have banned public investment in ESG funds. The EU also diluted its climate reporting rules in 2025 following business backlash. An FCA review found 92% of FTSE 350 companies already disclose climate risks voluntarily. Respondents to the FCA's consultation warned mandatory rules "could place disproportionate burdens" on smaller businesses. Jon Relleen, at the FCA, said the approach supports "transparency for investors and the UK's leading position as a place to invest." ShareAction's Luke Hildyard criticized the move, saying "few companies will escape material climate risk, and they must report on it."