FIA EPTA members welcome the opportunity to respond to HM Treasury’s CP on the Future regulatory regime for Environmental, Social, and Governance (ESG) ratings providers. FIA EPTA members welcome the actions and responsibilities taken by the UK Government and HMT and believe that regulation of ESG rating providers is important and needed to build trust in ESG data and products and help (end)investors make meaningful investment decisions. Almost all (retail) investors rely on data from rating providers for their investment decisions. For now, there is not enough harmonisation and standardisation between data for investors to make meaningful decisions. For an effective mobilisation of private capital for sustainable products, trust and clarity in the data and products are needed. FIA EPTA members believe to accomplish this, regulation is needed, and that by moving early the UK can reinforce its position as a leading centre of financial services. If the uncertainty around the data and products continues it will slow down the shift towards a green financial infrastructure.
