The Financial Conduct Authority has refreshed its ESG
(Environment, Social and Governance) Strategy, to help support
the transition to a more sustainable future.
The FCA has therefore, outlined a revamped ESG strategy which
will develop clear standards for sustainability, diversity and
net-zero targets, build high quality information for market
participants and financial services firms to rely on, and create
a well-functioning ecosystem that ensures firms take ESG
seriously, deliver on promises and avoid ‘Greenwashing’
This new ESG Strategy was published on the FCA website on
the 3rd of November, just 3 days after
the 2021 United Nations Climate
Change Conference (COP 26) kicked off.
Building on the commitments identified in its Business Plan
2021/22, the FCA plans to tackle its new ESG Strategy under five
main themes – three of which had already been outlined in its
previous strategy, these are, ‘Transparency’, ‘Trust’, and
‘Tools’. The two additional themes are ‘Transition’, and ‘Team’.
‘Transparency’ will see the FCA improve transparency of listed
companies’ and regulated firms’ performance on diversity and
inclusion, promote global standards for sustainability reporting,
and enhance climate-related financial disclosures.
‘Trust’ refers to support for fair and effective integration of
ESG into financial market decision making, and trusted delivery
of ESG-labelled securities, products and services.
‘Tools’ outlines the plans to influence internationally
consistent outcomes in ESG, as well as deliver an ambitious
Innovation work programme to support the market, consumers and
regulators with innovative solutions, and collaborate with
industry, UK regulators and the government.
‘Transition’ will see the FCA underpin a market-led transition to
a net-zero and more sustainable future, and encourage effective
investor stewardship.
Finally, ‘Team’ will ensure that, internally, the FCA will have
the right organisational structures, resources and capabilities
in place to appropriately integrate net zero and ESG
considerations, and continue ‘systems thinking’ research on the
ESG landscape.
Anthony Baker, CEO for Satellite Vu comments:
“Enforcing positive ESG change in the private sector requires a
concerted effort from business, government and our regulators,
and it is positive to see the FCA outlining clear and actionable
measures to help finance firms meet clearly defined
sustainability targets.
“Businesses which are unsure of how best to improve
sustainability and ESG policies are best advised to seek support
from third party and independent advisors, and enlist the aid of
cutting edge technological solutions which can outline the extent
of their eco-related issues.”
