On 10 February 2023, the UK’s Financial Conduct Authority (FCA) published a Discussion Paper: ‘Finance for positive sustainable change: governance, incentives and competence in regulated firms’ (DP23/1).
In DP23/1, the FCA states that it believes that good governance and a healthy culture is critical to financial services firms’ being able to deliver value to clients and consumers, as well as supporting market integrity.
The FCA notes that the aim of DP23/1 is to encourage an industry-wide dialogue on firms’ sustainability-related governance, incentives, and competencies.
In DP23/1, the FCA highlights that certain firms have already integrated material sustainability-related risks, opportunities and, in certain cases, impacts into their business, risk and capital allocation decisions.
