FCA sees 'clear rationale' for regulatory oversight of ESG data providers

In its ESG integration in UK capital markets feedback statement, the regulator noted there was broad agreement across the industry regarding the potential harms caused by the growing role of ESG data and rating providers. This included a potential lack of transparency, poor governance controls, potential conflicts of interest, insufficient engagement with companies and the high cost of data requests. Currently the regulator remains at the proposal stage, with suggestions that investment products should be required to apply "appropriate due diligence on any sustainability-related data,...