The UK’s Financial Conduct Authority has launched a discussion paper to canvas views from the country’s financial firms about how the sector is incorporating sustainability considerations and what may need to be done to make things work better in that regard.
The paper, “DP23/1: Finance for positive sustainable change”, was published on Friday and is aimed at all regulated firms in the financial sector, but in particular at banks, building societies, insurers as well as asset management and investment firms, according to the FSA.
The watchdog said in its launch statement: “To help the financial industry deliver against its potential to drive positive sustainable change, we are encouraging an industry-wide dialogue on firms’ sustainability-related governance, incentives, and competence”.
The FCA said it was “committed to supporting the role of the financial sector in enabling an economy‑wide transition to net zero, and to a sustainable future more broadly”.
It described sustainability within finance as “a fast moving and evolving field” where many initiatives were taking place.
“We want to help narrow this field and highlight good, evolving practices while considering whether there is a case for further regulatory measures in this area,” the authority said.
The FCA said the paper was part of the commitment to start stakeholder engagement on ESG governance, remuneration, incentives and training and certification in regulated firms that it had made in its November 2021 “Strategy for Positive Change”.
But initiating such a discussion in the industry also supported the government’s expectations that the authority heed its ambitions for the provision of sustainable finance, the FCA said, referencing a December 2022 letter it had been sent by the Chancellor of the Exchequer Jeremy Hunt.
The deadline for feedback is 10 May.
To read the digital edition of IPE’s latest magazine click here
No comments yet