Legal & Regulatory News

UK's Financial Conduct Authority publishes its refreshed ESG strategy

03 November 2021

On 3 November 2021, the UK Financial Conduct Authority (FCA) published its refreshed ESG strategy outlining its priorities and how it intends to deliver on the ESG-based targets set out in its Business Plan for 2021/22. The FCA's ESG strategy is built around the five following core themes:

  • Transparency: promoting transparency on climate change and wider sustainability along the value chain.
  • Trust: building trust and integrity in ESG-labelled instruments, products and the supporting ecosystem, whilst minimising greenwashing.
  • Tools: working with others to enhance industry capabilities and support firms’ management of climate-related and wider sustainability risks, opportunities and impacts.
  • Transition: supporting the role of finance in delivering a market-led transition to a more sustainable economy.
  • Team: developing strategies, organisational structures, resources and tools to support the integration of ESG into FCA activities.

The FCA's ESG strategy includes a retrospective view of the FCA's performance against the priorities it set in October 2019 regarding climate change and green finance. The FCA intends to provide interim updates on its work on ESG as part of its Business Plan and Annual Report in 2022, and will produce a more detailed stock-take on progress in early 2023.

Click here to access the FCA's refreshed ESG strategy.