Climate change and corporate reporting: the role of the FCA

ClientEarth argues that the FCA is failing to enforce existing climate-related reporting rules, leading to a prevalence of 'greenwishing' and misleading disclosures among UK-listed companies. The document highlights specific failures by companies such as Centamin plc, Synthomer plc, and Bodycote plc, where material climate risks are omitted or presented inconsistently. ClientEarth calls for a comprehensive review of company reporting and robust enforcement action to align the FCA's activities with the UK Government's 2050 net-zero commitment and the statutory objectives of protecting consumers and market integrity.

• ClientEarth asserts that the FCA risks contravening its statutory objectives and acting inconsistently with Treasury recommendations to support the UK's 2050 net-zero goal due to failures in enforcing climate-related reporting.
• There is a pervasive trend of 'greenwishing' or greenwash in 2021 annual reports, where companies provide unclear or incomplete information that may mislead investors into believing they are doing more to combat climate change than is actually occurring.
• Centamin plc is cited for failing to report how climate change impacts its business viability despite operating the Sukari gold mine in Egypt, a region highly vulnerable to rising temperatures and reduced rainfall.
• Synthomer plc is accused of omitting material analysis by promising to report according to TCFD recommendations in the future rather than providing current data, while simultaneously marketing its products as climate solutions without substantiation.
• Bodycote plc's reporting is described as inconsistent, claiming to be an 'enabler' for emission reductions while acknowledging that its heat treatment processes consume significant energy.
• ClientEarth argues that the FCA's 'comply or explain' approach for TCFD alignment is insufficient because it allows companies to provide vague promises of future disclosure instead of current, decision-useful information.
• The document identifies a failure among several investment trusts to provide any climate change information in their annual reports, despite legal requirements for directors to consider material risks.

APA

ClientEarth (2021). Climate change and corporate reporting: the role of the FCA. https://www.clientearth.org/media/xpxh3yty/17-08-2021-clientearth-letter-to-the-fca.pdf

Chicago

ClientEarth. Climate change and corporate reporting: the role of the FCA. 2021. https://www.clientearth.org/media/xpxh3yty/17-08-2021-clientearth-letter-to-the-fca.pdf.

Wikipedia

{{cite press release |author=ClientEarth |title=Climate change and corporate reporting: the role of the FCA |date=17 August 2021 |url=https://www.clientearth.org/media/xpxh3yty/17-08-2021-clientearth-letter-to-the-fca.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearth2021climate, author = {{ClientEarth}}, title = {{Climate change and corporate reporting: the role of the FCA}}, publisher = {ClientEarth}, year = {2021}, month = aug, url = {https://www.clientearth.org/media/xpxh3yty/17-08-2021-clientearth-letter-to-the-fca.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }