What’s on the UK’s FCA's ESG regulatory horizon?

Early 2023

UK Green Taxonomy: The Government is reviewing its approach to taxonomy developments and will be providing an update in the Green Finance Strategy ‘in the coming months’.

H1 2023

Climate-related requirements for pensions: The Pensions Regulator will launch a new regulatory initiative to assess compliance with the new climate-related requirements for statement of investment principles and implementation reports.

June 2023 (provisional)

Sustainability disclosure requirements (SDR) and investment product labels for asset managers: Following its consultation for SDR and investment labels for asset managers, (see our earlier blog post), the FCA intends to publish a policy statement with finalised rules in Q2 2023. Further parts of the overall SDR regime will be consulted on by relevant Government departments and regulators in due course.

Summer 2023

ESG data and ratings: Following a Treasury consultation in Q1 2023 on bringing ESG rating providers within the FCA’s regulatory remit, the FCA will consult in the Summer on a Code of Conduct for ESG data and rating providers with the aim to finalise it in Q4 2023.

Q4 2023/Q1 2024

Diversity in Financial Services: Following their joint discussion paper (DP2/21) published in July 2021 (see our earlier blog post), the FCA and PRA intend to publish their policy proposals to support progress on improving diversity and inclusion in the financial sector. A consultation is expected in H1 2023.

Q4 2023

Implementing International Sustainability Standards Board (ISSB) disclosure standards into FCA listing or transparency rules: The FCA expects to consult towards the end of 2023, with the final rules in the first half of 2024, although timing may be subject to the Government’s response to the ISSB standards which are due to be finalised in June 2023 (see our earlier blog post).