The Financial Conduct Authority will regulate companies providing environmental, social and governance ratings to users in the UK, under plans set out in chancellor Jeremy Hunt’s Spring Budget.
ESG ratings provision has come under scrutiny in the UK and overseas in recent years. In 2023, the FCA endorsed a voluntary code of conduct for providers designed by the International Capital Market Association and the International Regulatory Strategy Group. The EU, meanwhile, adopted plans to regulate ESG ratings providers in December.
