FCA Sets Out Priorities on Climate Change and Green Finance
FCA published feedback statement (FS19/6) on its October 2018 discussion paper (DP18/8) on climate change and green finance. Through the discussion paper, FCA sought views on the potential FCA action on climate change and green finance, in line with its strategic objective of ensuring that relevant financial markets function well. The statement identifies a number of priorities that will provide a foundation for the future work of FCA in this area. These priorities include issuers’ climate change disclosures, regulated firms’ integration of climate change risk and opportunities into their decision-making, and consumers’ access to green financial products and services.
The feedback statement applies to policy makers and regulatory bodies, regulated firms, issuers, investors, and advisers to issuers and investors, industry groups/trade bodies, industry experts and commentators, consumer groups and individual consumers, charities, and academics and think tanks. The statement sets out the key actions FCA will take:
- Consult in 2020 on new rules to improve climate-related disclosures by certain firms and clarify existing obligations
- Finalize rule changes requiring Independent Governance Committees to oversee and report on firms’ environmental, social, and governance (ESG) and stewardship policies
- Publish a feedback statement in response to a joint Discussion paper with the Financial Reporting Council on Stewardship, setting out actions to address the most significant barriers to effective stewardship
- Clarify expectations about consumer access to green financial products and services and take appropriate action to prevent consumers from being misled
- Continue to contribute to several collaborative initiatives, including the Government-led cross-regulator taskforce on disclosures and the Climate Financial Risk Forum (CFRF), which was established with PRA earlier this year.
FCA had received 73 responses to the discussion paper from a range of stakeholders, including regulated firms, trade bodies, and think tanks. The feedback has been summarized under five key themes: climate-related disclosures by securities issuers; climate-related disclosures by regulated firms; common metrics and standards on sustainability; stakeholder concerns, commercial priorities, and barriers to growth; and industry engagement.
Related Links
Keywords: Europe, UK, Banking, Insurance, Securities, Climate Change, Green Finance, Climate-Related Disclosures, FCA
Previous Article
ESRB Updates List of Countercyclical Capital Buffers in October 2019Related Articles
BIS Examines Use of Big Data and Machine Learning at Central Banks
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA Finalizes Reporting Standard for Operational Risk Requirements
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB Publishes Guide for Determining Penalties for Regulatory Breaches
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS Sets Out Good Practices to Manage Operational Risks Amid COVID
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR Announces New Data Collection Application for Banks and Insurers
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EIOPA Launches Study on Non-Life Underwriting Risk in Internal Models
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB Publishes Overview of Resolution Tools Available in Banking Union
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EBA Consults on Pillar 3 Disclosure Standards for ESG Risks Under CRR
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
