The UK’s Financial Conduct Authority (FCA) has invited ESG ratings providers to complete a voluntary survey which will inform future policy in the space. “As we continue to develop the future regulatory regime, we are engaging widely to inform our approach, which includes ESG ratings providers and users,” the FCA said. Input from the survey will inform the regulator’s cost benefit analysis, policy development and ultimately ensure that any future regulation is tailored to the needs of the market, it added. The FCA is seeking to better understand the business models and group structures used to provide ESG ratings, how these are constructed and distributed, and what policies and processes firms already have in place. In addition, the watchdog said it wants to understand how ESG ratings providers are interacting with broader sustainability disclosures. The issuance of the survey follows responses to a government-run consultation on the draft legislation about bringing ESG ratings providers into regulation. “In 2024, we confirmed, subject to government endorsement of the International Sustainability Standards Board standards, we plan to consult on amending our climate-related disclosures rules for listed companies to refer to these new standards [as well as consulting on] strengthening our expectations for listed companies’ transition plan disclosures, with reference to the Transition Plan Taskforce disclosure framework,” the FCA said. Providers have until 16 May to respond.
