From the blog: Climate campaigners across the country spluttered into their morning cups of fair trade coffee last Tuesday as the Department for Work and Pensions and Financial Conduct Authority published their final responses to the Law Commission’s 2017 report on pensions and social investing.
Having kept its cards very close to its chest over the past few months, the FCA revealed that not only does it intend to require independent governance committees to report on financially material environmental, social and governance risks, including climate change, but it recognises that climate risk should be considered alongside mainstream investment risks such as inflation and liquidity risk.
The small step of publishing this response is a giant leap forward in the approach of the UK’s biggest financial regulator.