UK: FCA consults on finance for positive sustainable change

The Financial Conduct Authority (FCA) has published a new discussion paper (DP 23/1) inviting views from regulated firms across the financial sector with the aim of encouraging an “industry-wide dialogue on firms’ sustainability-related governance, incentives, and competencies”. 

The FCA is seeking views on how it can move most effectively beyond disclosure-based initiatives. Firms are encouraged to reflect on the matters discussed, and consider, as appropriate, incorporating them as they review and refine their current approaches to governance, remuneration, incentives and training. The FCA aims to highlight good, evolving practices so that finance can deliver on its potential to drive positive sustainable change.

The deadline for comments is 10 May 2023 (with opportunities to engage with the FCA ahead of this deadline). The FCA will use the feedback to this DP, along with its ongoing analysis and supervisory engagement with firms, to consider how best to support the industry in the evolving field, and whether there is a case for further regulatory measures.

For more information on the FCA Discussion Paper, see our client briefing: FCA DP 23/1 “Finance for positive sustainable change” seeks views from across the financial services.

See also Sacha Sadan's (the FCA's ESG Director) related blog post on how closing the "say-do" gap is key to tackling greenwashing and boosting confidence in ESG standards.