On 6 July 2018, the FCA published its response to the recommendations made by the Environment Audit Committee in its June 2018 report, Greening Finance: embedding sustainability in financial decision making. The FCA’s comments included:
- The FCA will consult on rule changes requiring independent governance committees to report on their firm’s policies on evaluating environmental, social and governance (ESG) considerations, including ethical concerns raised by members.
- The FCA highlighted the need for issuers to make adequate disclosure on materially important information, including on ESG. However, it will not amend the listing rules to require climate-related financial disclosures.
The FCA will publish its approach on climate-related issues and green finance later in 2018.