Financial Conduct Authority Publishes Draft Voluntary Code Of Conduct For ESG Ratings And Data Product Providers

On July 5, an industry-led working group convened by the UK's financial regulator published a draft voluntary code of conduct for ESG data and ratings providers (the Code). The Code would apply to all companies based in the UK that compile the ESG ratings of different firms. The development of the Code is part of the UK's wider green finance strategy and comes a year after the Financial Conduct Authority (FCA) announced the launch of its consultation.

The Working Group comprises the International Capital Market Association (ICMA) and the International Regulatory Strategy Group (IRSG) and is co-chaired by M&G, Moody's, the London Stock Exchange Group and law firm Slaughter & May. Over the course of developing the Code, the Working Group met with regulators in other jurisdictions including Singapore, Japan and Canada.