ICMA appointed by the FCA to jointly provide the Secretariat for a working group to develop a Code of Conduct for ESG data and ratings providers


22 November 2022 The International Capital Market Association (ICMA) is announcing that it has been appointed by the FCA to jointly provide the Secretariat with the International Regulatory Strategy Group (IRSG) for the newly formed ESG Data and Ratings Code of Conduct Working Group (DRWG). The group has been tasked with developing a voluntary code of conduct for Environment, Social and Governance (ESG) data and ratings providers.

As financial services firms integrate sustainability into their activities and expand their ESG-focussed products, they are increasingly reliant on third party ESG data and ratings services. While potential regulatory oversight is being considered, the FCA is encouraging industry participants to develop and follow a voluntary Code of Conduct.

The Secretariat is convening an independent group including investors, ESG data and ratings providers and rated entities, to develop the Code. The group will be co-chaired by M&G and Moody’s (Chairs) and London Stock Exchange Group (LSEG) and Slaughter and May (Vice Chairs).  Consistent with their respective objectives, the FCA, the Bank of England and other relevant financial regulators and government departments will sit as active observers to this group.

The group will meet for the first time in December 2022 to start development of the Code.

Bryan Pascoe, CEO of ICMA, commented “We welcome the mandate from the FCA to conduct this working group with the IRSG. Our combined, in-depth experience of UK and Global financial markets will help ensure an unbiased and balanced approach to the development of this code for the benefit of market participants looking to advance their integration of ESG measures.”

Nicholas Pfaff, Deputy CEO of ICMA and Head of Sustainable Finance added “We will contribute our expertise in bringing about industry-led standards in sustainability and look forward to help coordinate this important working group with the IRSG. This future Code supported by the FCA will be a significant step in the development of consistent global standards for ESG Data and Ratings providers.”

For further information, please contact:

ICMA Communications

Oliver Tinkler
Senior Director
+44 20 7213 0323
+44 7931 100 499


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