FCA: FCA opens a discussion on the impact of climate change and green finance on financial services
15 October 2018
The effects of climate change and the associated transition to a low carbon economy may have a major impact on financial markets and on products that serve those markets. The discussion paper sets out how the impacts of climate change are relevant to the FCA’s statutory objectives of protecting consumers, protecting market integrity and promoting competition.
The discussion paper seeks input on four areas in which the FCA considers a greater regulatory focus is warranted:
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climate change and pensions – ensuring that those making investment decisions take account of risks including climate change
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enabling competition and market growth for green finance
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ensuring that disclosures in capital markets appropriately give adequate information to investors of the financial impacts of climate change
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the scope for the introduction of a new requirement for financial services firms to report publicly on how they manage climate risks
Andrew Bailey, Chief Executive at the FCA said:
“Climate change presents a disruptive and potentially irreversible threat to the planet. The impact of climate change on financial markets is uncertain but legal frameworks – at a global, European and UK level – have already begun to adapt to reflect a move to a low carbon economy.”
The FCA is now seeking feedback on the questions set out in this discussion paper and would like all those interested in financial services to consider the issues raised in this paper and provide comments by 31 January 2019.
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Discussion paper
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