The Financial Conduct Authority has abandoned plans to make listed companies adopt UK SRS S2, retaining a "comply or explain" regime for climate-related disclosures. The January proposal covered material climate risks and opportunities, climate targets and the potential effects of global warming on businesses. Companies and consultation respondents warned that mandatory reporting could impose disproportionate costs, particularly on smaller firms, and weaken the UK's competitiveness as a listing venue. An FCA review found that 92% of FTSE 350 companies already disclosed climate risks under current rules. The decision follows a broader retreat from mandatory climate reporting in the United States and European Union, despite record temperatures and droughts prompting renewed calls for corporate disclosure.