Financial Conduct Authority consults on simpler climate reporting for investment products with estimated GBP 20 million annual savings

The Financial Conduct Authority has proposed simplifying climate reporting for investment products by replacing detailed product-level reports under the Task Force on Climate-related Financial Disclosures framework with more targeted information for retail investors. The FCA estimates the change could save firms around GBP 20 million a year while giving investors clearer information on how material climate risks could affect investment performance in line with the Consumer Duty. The proposal follows a review of the current regime, which found that product-level reports have improved firms' awareness of climate risks but are often too complex for investors and not widely used. Under the proposed approach, retail investors would receive information focused on how climate risks could affect a product's financial performance, while institutional clients could request key emissions data without firms having to publish full reports. The changes form part of the FCA's broader work to streamline sustainability reporting for asset managers and FCA-regulated asset owners and complement its Sustainability Disclosure Requirements for asset managers. The consultation is open until 13 July 2026. The FCA aims to finalise and implement the rule change in the autumn.