The CMA’s environmental sustainability guidance on the application of Chapter I of the Competition Act 1998
On 12 October 2023, the Competition and Markets Authority (CMA) published Guidance on the application of Chapter I of the Competition Act 1998 to environmental sustainability agreements (the ‘CMA’s environmental sustainability guidance’).
Under section 234J of the Financial Services and Markets Act 2000, the FCA has concurrent powers to enforce competition law in the financial services sector.
The FCA will have regard for the CMA’s environmental sustainability guidance in the application of our concurrent competition powers.
FCA and Sustainability
In November 2021, the FCA set out our strategy for positive change with respect to our environmental, social and governance (ESG) priorities. We have continued to build on this with respect to competition issues, including engaging with industry stakeholders and the CMA. We recognise that appropriate cooperation between industry participants (and between industry and Government /regulators) can assist tackling ESG-related challenges effectively.
We welcome stakeholders bringing to our attention uncertainty in relation to specific potential ESG-related initiatives that may raise novel and significant concerns. We will consider whether and how we can either provide clarification, take other regulatory actions and/or direct enquiries to and work with the CMA.
We welcome the CMA’s guidance and will continue to collaborate with the CMA in this area.