FCA: Feedback On Climate Change And Green Finance10.17.2019
This Feedback Statement summarises the responses we received from stakeholders to our Discussion Paper (18/8) on Climate Change and Green Finance that we published in October 2018, and sets out our actions and next steps.
— UKSIF Ben (@UKSIF_Ben) October 16, 2019
Why we are publishing this Feedback Statement
Climate change is having a significant and wide-ranging impact on the UK economy and on financial services markets. We have an important role in enabling firms to manage the risks from moving to a low carbon economy, supporting the development of the green finance market and ensuring consumers are appropriately protected. This Feedback Statement sets out the actions we are taking to do this.
Who this applies to
This Feedback Statement applies to the following:
- consumer groups and individual consumers
- industry groups / trade bodies
- regulated firms
- issuers, investors, and advisors to issuers and investors
- policy-makers and regulatory bodies
- industry experts and commentators
- academics and think tanks
Our key actions and next steps include:
- consulting on new rules to improve climate-related disclosures by issuers and clarifying existing obligations
- finalising rule changes requiring Independent Governance Committees (IGCs) to oversee and report on firms’ environmental, social and governance (ESG) and stewardship policies, as well as separate rule changes to facilitate investment in patient capital opportunities
- publishing a feedback statement in response to a joint Discussion paper with the Financial Reporting Council (FRC) on Stewardship setting out actions to address the most significant barriers to effective stewardship
challenging firms where we see potential greenwashing, clarifying our expectations and taking appropriate action to prevent consumers being misled
- contributing to several important collaborative initiatives, including the Climate Financial Risk Forum (CFRF), the Fair and Effective Markets Review (FEMR) working group, the Government-led cross-regulator taskforce on disclosures and the European Commission’s Sustainable Finance Action Plan (SFAP)
The FCA is on the case re #greenwashing, according to its Feedback Statement on climate change & green finance. Paper also lays out its intent to apply greater scrutiny to #ESG data services https://t.co/gRxKRBmHYp pic.twitter.com/9AZbkmtp6x
— Annalise Toberman (@AToberman) October 17, 2019
Traders are increasingly being asked how ESG fits in execution.
Solution enables financial firms to better determine ESG credentials for clients and their supply chains.
Federal regulators still lag behind some global counterparts which could adversely affect U.S. companies.
The EU Parliament’s report substantially extends the coverage of the label.
BNP Paribas Asset Management launched its first European ESG ETF Barometer survey.