FCA Consults on Its Proposed Approach to ESG Ratings Regulation

FCA consults on its proposed approach to ESG ratings regulation

On 1 December 2025, the Financial Conduct Authority (FCA) published Consultation Paper 25/34 (CP25/34) on its proposed approach to Environmental, Social, Governance (ESG) ratings regulation.OverviewFollowing publication of draft legislation by HM Treasury to bring ESG ratings within the FCA’s regulatory perimeter, the FCA have set out in CP25/34 its approach to developing the ESG ratings regime.The FCA explained that as this will be a newly regu…

ESG News Recap: FCA ESG Ratings Proposal

Impakter FCA Proposes New Transparency and Governance Rules for ESG Ratings Providers Today’s ESG Updates FCA Proposes New ESG Ratings Rules: UK regulator unveils transparency and governance requirements for ratings providers. NYC Targets Three Asset Managers: Lander urges pension funds to drop BlackRock, Fidelity and PanAgora. Europe’s Aging Landfills Raise Alarm: Mapping shows thousands of toxic sites in climate-exposed flood zones. Portugal’s…

ESG Ratings: FCA Consults on a New Regulatory Framework

Ratings providers will be subject to a number of existing FCA rules, as well as bespoke regulatory requirements, which will require a significant uplift to systems and processes.By Nicola Higgs, Becky Critchley, Anne Mainwaring, and Jaime MartinFollowing HM Treasury finalising legislation (subject to final parliamentary approval) to introduce a new UK regulated activity of the provision of environmental, social, and governance (ESG) ratings, the…