Context
Nikhil Rathi, the FCA CEO, has announced and set out the FCA’s strategy for what it is calling positive sustainable change in a speech delivered at the COP26 UN Climate Change Conference.
Key points to note
The speech was broken into sections covering the FCA’s strategy, its work so far, global solutions to global problems, supporting the Government’s green finance ambition, positive market-led solutions, innovation and transformation, and ‘walking the walk’. The main highlights of the speech were:
- The release of the FCA’s new strategy for positive change, and its ESG strategy upcoming milestones.
- The themes of trust and transparency remain at the core of the FCA’s strategy
- The announcement of a programme of work to support a market-led transition to a more sustainable economy; the FCA is aiming to embed climate and wider ESG considerations in everything it does.
- The International Sustainability Standards Board, launched 3rd November (the day of the speech), is a ‘game-changer’ in the FCA’s view; the FCA will work with IOSCO and others to promote adoption of the new FCA Board’s global baseline sustainability reporting standards.
- The FCA supports the Government’s ambition to work towards making the UK the world’s first net zero financial sector.
- To help mobilise the capital needed to keep emissions in check, the FCA needs to build a trusted market and internationally consistent frameworks and standards.
Next actions
None – for information and awareness, but firms need to be aware of the FCA’s rapidly developing strategies in this regard.