The FCA has said that from 1 January 2021 premium listed companies on the London Stock Exchange will have to conform to new climate risk disclosure rules.

Nikhil Rathi, chief executive of the Financial Conduct Authority said the new rules will require premium listed companies to make disclosures in line with the recommendations of the Taskforce on Climate-related Financial Disclosures. Premium listings cover two-thirds of market capitalisation of listed shares. The change will be introduced on a “comply or explain” basis, meaning companies must say publicly if they are not applying any of the TCFD disclosures.

The FCA will also consult in the first half of 2021 on extending the scope of these rules and on introducing TCFD obligations for asset managers, life insurers and pension providers.

Chancellor of the Exchequer Rishi Sunak said Monday that TCFD disclosures would become mandatory by 2025, going beyond “comply or explain” to support the greening of the UK economy.