FCA publishes Feedback Statement on ESG integration in UK capital markets

Published: 05 July 2022

The FCA has published a Feedback Statement on ESG integration in UK capital markets. The Feedback Statement collates stakeholder views on the discussion chapter included in its Consultation Paper CP21/18, which was published in June 2021. Key policy actions set out include:

  • ESG-labelled debt instruments: The FCA encourage issuers of ESG-labelled ‘use of proceeds’ bonds to consider relevant industry standards and remind issuers of their obligations in relation to advertisements. The FCA will consider whether further market oversight and enforcement actions are needed. The FCA have also published a Primary Market Bulletin, alongside the Feedback Statement, setting out further details.
  • ESG data and rating providers: The FCA believes that greater regulatory oversight of providers of ESG data and ratings is needed to promote good governance and transparency. The FCA also sees a clear rationale for a globally consistent approach informed by IOSCO’s recommendations on ESG data and ratings.

The FCA will work with Treasury, which is considering bringing ESG data and ratings providers into the FCA’s remit, on next steps.