Almost 500 firms regulated by the UK’s Financial Conduct Authority will need to explain whether their climate disclosures meet global best practice from 2022 onwards.

In an effort to promote better climate-related financial disclosures, the FCA says premium listed firms must follow a ‘comply or explain’ rule on whether their disclosures are consistent with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).

“The rule will apply for accounting periods beginning