14 September, 2023 / Regulation
A busy year of ESG regulation
By Anna Fedorova
Parts of the finance industry that have previously escaped scrutiny are being brought into the regulatory fold
Over the past year, the UK and Europe have seen an encouraging increase in regulatory frameworks designed to cover parts of the financial industry that have previously escaped ESG-related regulatory scrutiny.
For example, in June the EU published a new proposal to govern ESG ratings providers, requiring them to gain authorisation to provide ratings in the region.
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This came hot on the heels of the UK’s proposal to bring ESG ratings providers under the Financial Conduct Authority’s (FCA) remit. This Code of Conduct, which is set to be finalised in Q4, proposes a six-point approach to regulate an industry that has faced criticism over inconsistencies and conflicts of interest.
An FCA spokesperson said: “We have delivered key regulatory initiatives in line with the priorities set out in our ESG strategy. This includes publishing proposals aimed at clamping down on greenwashing, the formation of a group to develop a voluntary Code of Conduct for ESG data and ratings providers, active monitoring of ESG-related business by firms and our review of climate disclosures by listed companies.”
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