Britain’s Financial Conduct Authority (FCA) outlines ambitions to create a new advisory committee focused on environment, social, and governance (ESG) related issues, such as greenwashing.
In the years following Brexit, the UK government has focused its efforts on becoming a leader in sustainability and green finance. But without a clear, focused plan for how to do so, it’s not uncommon for organisations to abuse the lack of regulations for their own gain.
The creation of this new advisory committee has, in part, come about to tackle the issue of ‘greenwashing’ – the practice of deceptive advertising or marketing employed by some organisations or companies to appear more sustainable or ‘green’ than they are.
Tackling greenwashing is critical and with millions of pounds being invested into sustainability, the FCA is now under significant pressure to hold companies to account over their green credentials. Ensuring that any claims made of climate-conscious action or policies are, in fact, genuine.
Britain has already taken steps to ensure this and is the first major economy to make climate disclosures by organisations and companies mandatory to give customers and investors better and more transparent information.
Plans by the FCA to create this new ESG Advisory Committee will not only provide customers and investors with greater transparency, but will support the UK government’s efforts to meet the objective for the watchdog’s policies to help Britain reach a net-zero economy by 2050.
A small number of external experts who specialize in ESG will be included in the committee to provide guidance and support for the development of the FCA’s strategy.
The role of the committee will be to advise the FCA’s Board on:
- how it executes oversight of ESG issues relevant to the FCA both as a regulator and its own operations
- relevant emerging ESG topics or issues
- how the FCA should develop its ESG Strategy, maintaining the organisation’s statutory objectives and regulatory principles.
It is not expected that the experts who join the committee will be from FCA regulated companies. Experts interested in joining the committee have until September 16th to apply.
By taking steps to create this ESG Advisory Committee, the FCA are ensuring that ambitious rules, policies and action not only work in practice but do have a positive impact for both people and the planet.
Those interested in joining the committee can send their details directly through to the FCA by 16th September for review.
