FCA adds ESG Advisory Committee to its Board
The FCA has established a new advisory committee to the FCA’s Board to work on Environmental, Social and Governance (ESG) issues.
Month ago the FCA Board agreed to establish a new ESG Advisory Committee. Its aim is to help execute ESG-related responsibilities, such as help achieve a net zero economy by 2050.
In a bid to clamp down on greenwashing, the FCA proposed in October 2022 a package of new measures. These included investments in product sustainability labels and restrictions on how terms like ‘ESG’, ‘green’ or ‘sustainable’ could be used.
The FCA has already delivered in line with the commitment made in the FCA’s ESG Strategy and Business Plan. It actively acted on publishing proposals for measures aimed at clamping down on greenwashing:
- The formation of a group to develop a voluntary Code of Conduct for ESG data and ratings providers
- Active monitoring of ESG-related business by firms
- Review of climate disclosures by listed companies
As the work continues to progress, the new ESG Advisory Committee will support the Board in executing oversight of ESG-related issues. The tackled issues will be relevant to the FCA as a corporate entity and as a regulator.
Additionally, the Committee will provide guidance to the Board on relevant emerging ESG topics or issues. It will offer support on how the FCA should develop its ESG strategy in keeping with the organisation’s statutory objectives and regulatory principles.