The Financial Conduct Authority has delayed a consultation on sustainability and what constitutes ‘green’ until the autumn, it announced this week.
In an update on 4 July, the watchdog said: “We had aimed to consult in Q2 of 2022. We are now planning on consulting in the autumn, to allow us to take account of other international policy initiative and ensure stakeholders have time to consider these issues.”
The consultation follows a discussion paper, published in November 2021, seeking initial views on sustainability disclosure requirements, as well as the sustainable investment labelling system.
Those views will form the basis of the, now delayed, consultation.
No details were provided by the FCA about which international policy initiatives or stakeholders were the drivers behind the decision to push the consultation to the autumn.
Becky O’Connor, head of pensions and savings at Interactive Investor, said: “The City regulator’s role in clarifying what it means for an investment to be green and preventing greenwash is absolutely paramount to the government’s goals and also for normal investors who want to see their money working towards a better environment.
“It’s vital this consultation doesn’t perpetually get kicked further down the road.
“The investment industry – as well as people who want to invest their pensions and ISAs sustainably – need the transparency and peace of mind that official disclosures and labels will give them – sooner rather than later.”
See also: FCA urged to move fast on ESG fund labelling to catch up with Europe
