FCA addresses sustainability regulations ‘alphabet soup’
The FCA has published a discussion paper that requests views on the finance industry’s sustainability-related governance, incentives and competence, with the aim of preparing for reforms in the industry to incentivise positive change. It also proposes that environmental or social objectives should be reflected in funds’ policies and strategies.
The regulator wishes to drive the evolution of sustainability initiatives, considering other factors such as human rights, diversity and inclusion, biodiversity and nature, in addition to a focus on the impact of climate change.
Furthermore, it outlined a desire to drive a framework-based approach instead of relying on disclosure-based initiatives.
Hayden Morgan, partner and head of sustainable finance consultancy at Pinsent Masons, shared his insight into the paper’s publication, acknowledging the challenge faced...
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