The U.K. Financial Conduct Authority’s (FCA) new climate disclosure proposals for asset managers are a positive development for the industry, says Moody’s Investors Service in a new report.

Last week, the FCA launched a consultation on climate-related disclosure for asset managers, life insurers and pension funds that would introduce new disclosure requirements on climate-related risks for firms managing at least £5 billion in assets.

Among other things, the proposals would require firms to publish an annual report setting out how they account for climate-related risks and opportunities in their investment management. They would also have to publish disclosure on their investment products and asset portfolios using standardized metrics.

Moody’s said the proposals are a positive for asset managers. “[A]lthough the disclosures would add costs, they would help asset managers develop and meet investor demand for green investment strategies,” the report said, which will outweigh the added costs.

“Based on the FCA’s estimated costs, we estimate the one-off expense would be 0.08%-0.15% of large asset managers’ revenue and 0.3%-0.5% of midsize asset managers’ revenue,” Moody’s said.

Against that backdrop, Moody’s said that progressive firms — such as BlackRock, Inc., Schroders and Standard Life Aberdeen plc — are “best positioned to benefit.”

Additionally, the report said the FCA proposals “would improve the consistency and comparability of the asset management sector’s environmental metrics, increase awareness of climate risk in investment management and raise industry standards in reducing portfolios’ carbon footprint.”