Context
Sacha Sadan, the FCA Director of Environmental, Social and Governance (ESG) has published a blog highlighting that closing the ‘say-do’ gap is key to tackling greenwashing and boosting confidence in ESG standards.
Key points to note
Looking back on recent years significant progress has been made in ESG, and Sadan notes his pride that the financial services industry has been front and centre in helping to drive positive, sustainable change. However, he also notes that the FCA need to start closing the say-do gap and move from well-meaning commitments to real action.
The financial sector is immense, and it has a vital role to play in helping the economy adapt to a more sustainable long-term future. The journey to a net zero economy is one we’re all on together and the FCA are committed to playing their part in the government’s vision for the UK to be the world’s first net zero aligned financial centre.
In the Chancellor’s latest remit letter to the FCA, the Government called out the importance of its role; requesting that the FCA have regard to their ambitions for the provision of sustainable finance and their commitment to a net zero economy by 2050. Sadan continues that creating positive, sustainable change isn’t just about climate change; it’s about looking beyond and considering the wider environmental issues, such as biodiversity and nature, as well as social and governance issues, such as; diversity and inclusion; the living wage; fair taxation and supply chains.
Creating a more sustainable future is something most of us see as a necessity – governments, regulators, investors and consumers alike. Sadan asks for feedback on the FCA’s Finance for positive sustainable change Discussion Paper, on the suitability of the FCAs current regulatory framework in adapting to achieve positive change.
Next actions
None – for information and awareness.