Sustainable Investing  

FCA to introduce ESG rules for advisers 'in due course'

As part of this, ‘transparency’ and ‘trust’ have been key themes of the regulator’s work on climate change and ESG, reflecting the initial priorities set out in October 2019.

These remain core areas of focus, but the FCA said its work is moving into a new phase. 

“We are already working hard to ensure that we have the right arrangements and capabilities in place across the organisation to respond to the chancellor’s expectation in our latest remit letter that we ‘have regard’ to the government’s commitment to a net zero economy by 2050 in all our regulatory activities,” it said.

Building on its existing work, the FCA has developed a refreshed ESG strategy which sets out how it plans to deliver on the target ESG-related outcomes included in its business plan 2021/22.

The City watchdog’s work is based on five core themes, which include:

  • Transparency – promoting transparency on climate change and wider sustainability along the value chain
  • Trust – building trust and integrity in ESG-labelled instruments, products and the supporting ecosystem
  • Tools – working with others to enhance industry capabilities and support firms’ management of climate-related and wider sustainability risks, opportunities and impacts
  • Transition – supporting the role of finance in delivering a market-led transition to a more sustainable economy
  • Team – developing strategies, organisational structures, resources and tools to support the integration of ESG into FCA activities

The FCA said: “As we deliver our strategy across these themes, we are collaborating with the government, other UK regulators, industry and other stakeholders to ensure UK financial services and the UK regulatory regime are at the forefront of ESG internationally.

“We are also working actively with our international partners to develop robust and commonly agreed international standards on ESG that can serve global markets effectively. We want UK consumers, financial services firms and securities issuers to interact and operate within a world-leading system.”

sonia.rach@ft.com

What do you think about the issues raised by this story? Email us on FTAletters@ft.com to let us know