AIC supports greater regulatory oversight of ESG data and ratings providers

Response to the FCA’s feedback statement “ESF integration in UK capital markets”.

esg

The Association of Investment Companies (AIC) has responded to the FCA’s feedback statement, “ESG integration in UK capital markets” (FS22/4).

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “It’s vital that investors can trust ESG data and ratings which are increasingly used in investment decision-making. So we strongly support the FCA’s view that greater regulatory oversight is essential to provide reliable and objective information.

“It’s clear that ESG data and ratings services must be well-governed, independent, transparent and have reliable methodologies and processes. Without proper oversight of these providers there are risks of misallocation of investments, greenwashing and consumer harm.

“ESG is an increasingly important investment consideration for investors, but too many claims still do not stand up to scrutiny. We have called for high standards so investors can clearly differentiate ESG funds from other investment products. We look forward to working with the FCA and the Treasury to ensure ESG data and ratings are robust and credible.”

 

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