On 2 July 2019, the FCA published a Joint Declaration with the PRA, the Pensions Regulator and Financial Reporting Council, welcoming the publication of the Government’s Green Finance Strategy and setting out a shared understanding of the financial risks and opportunities of climate change.
The FCA welcomes the Chancellor’s announcement that the FCA will have to have regard to the COP21 Paris Agreement when advancing its objectives and discharging its duties, and that this will be reflected in the next letter of recommendation that HM Treasury issues to the FCA. This aligns with the FCA’s understanding that addressing the risks of climate change and enabling the transition to a low carbon economy serves the public interest and forms part of its strategic objective to ensure that Financial Services markets function well.
The FCA also sets out its recent work on climate change. In the coming months it will provide an update on its work on climate change, providing feedback on responses to its earlier Discussion Paper on Climate Change and Green Finance and setting out next steps.