We warmly welcome the FCA’s discussion paper on Finance for positive sustainable change, which proposes to strengthen supervisory expectations with regards to business objectives and strategies, effective stewardship and education and training across the financial sector.
In our response, we make five key recommendations:
- The UK could be a world-leading advocate for an enhanced consideration of social factors, particularly through bodies such as the International Organization of Securities Commissions (IOSCO) and the International Sustainability Standards Board (ISSB).
- All firms should embed sustainability‐related considerations in their business objectives, including social considerations, and especially those pertaining to socio-economic distribution and community voice that are vital for a Just Transition to Net Zero.
- Fiduciary duty should be reformed to further enable pension trustees and administering authorities (as well as those acting on their behalf, including asset managers and investment consultants) to invest with impact.
- Firms should be further encouraged to become signatories of the UK stewardship code, to acknowledge and strengthen the positive impact that investors can have through their stewardship and engagement activities.
- The FCA’s training and competence framework should expand to include certificates relating to ESG.
You can read our full response below.