The Financial Conduct Authority (FCA) has announced plans to establish a new advisory committee to the FCA board focused on environmental, social and governance (ESG) issues, with the search for committee members currently underway.

The new ESG advisory committee will help the board execute its ESG-related responsibilities, including meeting the government’s expectation that it has 'regard' to the UK’s commitment to achieving a net-zero economy by 2050 when considering how to advance and achieve its objectives and functions.

In particular, the committee will be expected to provide advice on how the board executes oversight of ESG issues relevant to the FCA, both as a regulator and in its own operation.

The committee will also provide advice on relevant emerging ESG topics or issues, and how the FCA should develop its ESG Strategy in keeping with the organisation’s statutory objectives and regulatory principles.

It is expected to meet for the first time in Q4 2022 and quarterly from this point on, with more frequent meetings to be held when necessary.

The committee will be made up of a small number of external experts with in-depth knowledge of ESG issues in the financial sector, with the board to select a chair of the committee as well as provide secretariat support.

Members will be appointed by the board in a personal capacity, although the FCA confirmed that it does not expect people currently employed by FCA regulated firms to be appointable to the committee.

Those interested in joining the committee should contact the FCA by 16 September.

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