The FCA said the shake-up would help make ESG ratings more transparent

Environmental, Social and Governance (ESG) ratings providers will be policed by the Financial Conduct Authority (FCA) under plans published by the watchdog citing concerns of conflicts of interest and a lack of transparency in the burgeoning industry.

in what promises to be the most radical overhaul of sustainable finance regulation in UK history, the City’s main watchdog has launched a formal consultation to bring agencies that provide ESG ratings under its remit.

The agencies assess the performance of companies and funds against various environmental and social inclusion criteria. As more major funds have incorporated ESG into their investment strategies, the ratings agency industry, which tends to charge portfolio

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