In its own climate-related financial disclosure, the UK’s financial markets regulator highlights that current policies would lead to a “hot house world” scenario, which could force it to focus almost entirely on emerging harms suffered by consumers. Discretionary activities, including market intelligence, would have to be scrapped.
The new document – published in a week of record temperatures in the UK – is an account of how the Financial Conduct Authority would be affected by climate change, putting it in line with the organisations it oversees. In January last year, the regulator brought in new rules on climate-related disclosures for listed companies, asset managers and FCA-regulated asset owners.