FCA proposes simpler climate reporting for investment products
The FCA proposed replacing TCFD-based product-level climate disclosures with simpler retail-targeted information, estimating £20m in annual savings for investment firms.
The FCA is moving from detailed TCFD product reports to simpler, Consumer Duty-aligned climate information. The change reduces compliance cost but shifts focus to investor comprehension of climate risk exposure.
Affects ESG disclosure obligations, product governance and Consumer Duty compliance for asset managers and investment platforms.
Action Required
Assess current TCFD product disclosure processes and prepare to transition to simplified retail-focused climate reporting under Consumer Duty.
Material change to UK sustainability disclosure regime affecting all investment product manufacturers and distributors.
Engage with FCA consultation; plan redesign of product climate disclosures to meet simplified retail-investor framework while maintaining Consumer Duty obligations.
“The FCA proposes to simplify climate reporting for investment products, replacing detailed TCFD product reports with simpler retail-focused disclosures aligned with Consumer Duty, estimated to save firms around £20m annually.”
Published: 2026-06-17