FCA: Feedback On Climate Change And Green Finance

Shanny Basar

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.

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
  • charities
  • 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

Next steps
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)

Source: FCA

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