FCA chief executive says regulating ESG data and rating providers is necessary

In a speech delivered at the Peterson Institute for International Economics, Nikhil Rathi, chief executive of the UK’s Financial Conduct Authority (FCA) stated that the FCA is in support of regulating ESG data and rating providers. Rathi mentioned that this was necessary in order to provide financial markets with adequate transparency and governance mechanisms. Rathi added, “recently, we published our response on ESG integration in capital markets and will later this year release our Sustainability Disclosure Requirements”. The speech also reinforced the UK’s support of mandatory climate disclosures. Rathi concluded the speech by calling for international regulatory cooperation, “it is an exciting and crucial time to be a regulator because of the challenges and opportunities we face. And given the scale and nature of those challenges and opportunities, international collaboration has never been so vital”.