ESG Conduct Code for data and ratings providers could be ready in 2023

A voluntary Code of Conduct for data and ratings providers on ESG (Environmental, Social and Governance) is expected to be ready for consultation in the second half of next year, coming into effect four months afterwards.

By Neasa MacErlean

The Financial Conduct Authority - which is driving the initiative in the role of 'active observer' - is still waiting on a government decision as to whether it will regulate this area. But, it has decided to press ahead because of "the potential for harm" it identifies if there are delays. It believes that this code is needed, regardless of how it is overseen - and it also wishes it to apply to data and ratings providers that might end up outside the regulatory perimeter.