Whitehall sources told the FT that ministers were planning to unveil formal proposals as early as January next year following the three-month consultation that closed in June.

The consultation was opened by the Treasury back in March and sought to look at whether regulation for providers of ESG ratings should be introduced, and on the potential scope of a regulatory regime. Minister are still formally analysing the consultation responses, however.

ESG ratings providers" href="https://www.investmentweek.co.uk/news/4089295/green-day-treasury-launches-consultation-esg-ratings-providers" target="_blank" rel="noopener">'Green Day': Treasury launches consultation on ESG ratings providers

The review followed Chancellor Jeremy Hunt's rollout of the Edinburgh reforms in December 2022, when he announced that the government wanted to ensure "improved transparency and good conduct in the ESG ratings market", and that Treasury will consult on a potential regulatory regime for ESG ratings providers.

A Financial Conduct Authority spokesperson told Investment Week: "We continue to work with government on their consultation for a regulatory regime for ESG ratings providers."

ESG ratings within both the UK and global markets have been widely criticised for the lack of comparability between different providers and the outcomes reached.

The UK Treasury has been contacted for comment.