"We have an important role to play in creating an environment where firms can manage the risks from moving to a greener economy"
The regulator says its priorities include issuers’ climate change disclosures, regulated firms’ integration of climate change risk and opportunities into their decision-making and consumers’ access to green financial products and services.
A statement, released today, sets out key actions the FCA will take in each of these areas, including consulting on new rules to improve climate-related disclosures by certain firms and clarifying existing obligations.
The FCA has also clarified its expectations around consumers’ access to green financial products and services and taking appropriate action to prevent consumers being misled.
Additionally, it has finalised 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.
The FCA says it will continue to contribute to several collaborative initiatives, including the Government-led cross-regulator taskforce on disclosures and the Climate Financial Risk Forum (CFRF), which they established with the Prudential Regulation Authority earlier this year.
Andrew Bailey, chief executive of the FCA, said: "We have an important role to play in creating an environment where firms can manage the risks from moving to a greener economy and capture the opportunities to benefit consumers.
"This Feedback Statement is the next step in our drive to provide clarity for firms and consumers about how our work will help support the response to the climate challenge and the development of the green finance market."
