FCA to Enlist External Experts to Help Shape Work on ESG Issues
The Financial Conduct Authority (FCA) is establishing a new advisory committee to its Board to work on the Environmental, Social, and Governance (ESG) issues to meet the government expectation of achieving a net zero economy by 2050. FCA is looking for expressions of interest from stakeholders, until September 16, 2022, to join this committee.
The Committee will provide advice to the Board on relevant emerging ESG topics or issues, oversight of execution of ESG issues relevant to the FCA both as a regulator and its own operations, and how the FCA should develop its ESG Strategy, in line with the organization’s statutory objectives and regulatory principles. The Committee’s membership will include a small number of external experts who have in depth knowledge of ESG issues in the financial sector. The Committee is expected to meet for the first time in the fourth quarter of 2022 and will continue to meet every quarter from then onward. Earlier in the year, FCA had set out its ESG strategy, which describes the target outcomes and the actions to support the financial sector in driving positive change, including the transition to net zero. FCA notes that the ESG strategy will continue to evolve based on knowledge, resources, and understanding of the changing landscape. Going forward, FCA will monitor progress against commitments and provide interim updates as part of its business plan and annual report in 2022, with a more detailed stock-take on progress in 2023.
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Keywords: Europe, UK, Banking, Securities, Business Plan, ESG Strategy, Sustainable Finance, Net Zero Economy, ESG, Climate Change Risk, FCA
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