According to HMT, the announcement is a 'holding update' for the industry, with the consultation response and legislative timeline due to follow.
HM Treasury has confirmed it will regulate ESG ratings, following a year-long consultation initiated in the wake of 2023’s Spring Budget.
According to an update on HMT's website, the government has confirmed as part of 2024's Spring Budget today (6 March) that a regulatory regime will be implemented.
The regulatory regime will oversee the provision of ESG ratings, where "assessments of ESG factors are used for investment decisions and influence capital allocation".
HMT said this would "improve clarity and trust in ESG ratings".
The consultation sought to examine whether regulation for providers of ESG ratings should be introduced and the potential scope of such a regulatory regime.
According to HMT, the announcement is a "holding update" for the industry, with the consultation response and legislative timeline due to follow.
Last November, the FT reported ministers were planning to unveil formal proposals as early as January 2024, although this update is the first formal confirmation the industry has seen.
More to follow.
