FCA sees 'clear rationale' for regulatory oversight of ESG data providers

Mixed feedback on UK green bond standard

The Financial Conduct Authority has said there is a “clear rationale” for it to provide regulatory oversight of “certain ESG data and rating providers”.

In its ESG integration in UK capital markets feedback statement, the regulator noted there was broad agreement across the industry regarding the potential harms caused by the growing role of ESG data and rating providers. This included a potential lack of transparency, poor governance controls, potential conflicts of interest, insufficient engagement with companies and the high cost of data requests. New UK FCA rules on climate-related disclosures — ten key points Currently the regulator remains at the proposal stage, with suggestions that investment products should be required to ...