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The International Capital Market Association (ICMA) is announcing
that it has been appointed by the FCA to jointly provide the Secretariat
with the International Regulatory Strategy Group (IRSG) for the newly
formed ESG Data and Ratings Code of Conduct Working Group (DRWG).
As
financial services firms integrate sustainability into their activities
and expand their ESG-focussed products, they are increasingly reliant
on third party ESG data and ratings services. While potential regulatory
oversight is being considered, the FCA is encouraging industry
participants to develop and follow a voluntary Code of Conduct.
The
Secretariat is convening an independent group including investors, ESG
data and ratings providers and rated entities, to develop the Code. The
group will be co-chaired by M&G and Moody’s (Chairs) and London
Stock Exchange Group (LSEG) and Slaughter and May (Vice Chairs).
Consistent with their respective objectives, the FCA, the Bank of
England and other relevant financial regulators and government
departments will sit as active observers to this group.
The group will meet for the first time in December 2022 to start development of the Code.
Bryan Pascoe, CEO of ICMA, commented “We welcome the mandate from the FCA to conduct this working group with the IRSG. Our combined, in-depth experience of UK and Global financial markets will help ensure an unbiased and balanced approach to the development of this code for the benefit of market participants looking to advance their integration of ESG measures.”
Nicholas Pfaff, Deputy CEO of ICMA and Head of Sustainable Finance added “We will contribute our expertise in bringing about industry-led standards in sustainability and look forward to help coordinate this important working group with the IRSG. This future Code supported by the FCA will be a significant step in the development of consistent global standards for ESG Data and Ratings providers.”