FCA publishes feedback statement on climate change and green finance

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22 Oct, 2019

The Financial Conduct Authority (FCA) has published a Feedback Statement (FS 19/6) on climate change and green finance.

The Feedback Statement, which summarises the responses received to its Discussion Paper 18/8, sets out the FCA's planned next steps in the move towards a greener economy.

In particular, the statement confirms that the FCA plans to issue a consultation paper in 2020 which will propose new disclosure requirements for certain issuers aligned with the Task Force on Climate-related Financial Disclosure's (TCFD’s) recommendations on a 'comply or explain' basis and clarify existing disclosure obligations relating to climate change risks. The FCA also plans to:

  • finalise proposed rule changes requiring Independent Governance Committees to oversee and report on firms’ environmental, social and governance (ESG) and stewardship policies by the end of 2019;
  • publish a feedback statement in response to a joint Discussion paper with the Financial Reporting Council (FRC) on Stewardship setting out actions to address the most significant barriers to effective stewardship; and
  • challenge firms on potential greenwashing, and take appropriate action to prevent consumers being misled.

The Feedback Statement is available on the FCA website.

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