UK set to unveil regulatory regime for ESG ratings industry

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Ministers intend to unveil formal proposals as early as January against backdrop of global crackdown

The UK government is set to press ahead with plans to regulate agencies that evaluate the environmental, social and governance performance of companies, the latest in a global crackdown on the sustainable ratings industry. Ministers intend to unveil formal proposals as early as January next year following a three-month consultation that closed in June, Whitehall insiders told the Financial Times.

The FCA, the UK’s markets regulator, has been encouraging the industry to adopt a voluntary code of conduct currently under development, in part because of its uncertainty about its formal powers to oversee the sector. A working group created at the instigation of the FCA is due to publish the voluntary code for ESG data and rating providers next month.

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