DP23/1: Finance for positive sustainable change

DP23/1 published
Discussion period ends

We are asking for views on sustainability-related governance, incentives and competence in regulated firms. 

Read  DP23/1

We are committed to supporting the role of the financial sector in enabling an economy‑wide transition to net zero, and to a sustainable future more broadly. To help the financial industry deliver against its potential to drive positive sustainable change, we are encouraging an industry-wide dialogue on firms’ sustainability-related governance, incentives, and competence. 

This is a fast moving and evolving field where there are many initiatives taking place. We want to help narrow this field and highlight good, evolving practices while considering whether there is a case for further regulatory measures in this area. 

To encourage diversity of thought and wide-ranging debate, this Discussion Paper also includes commissioned articles from experts with relevant and interesting perspectives on firms’ sustainability-related governance, incentives, competence and stewardship arrangements. We are grateful to the authors for their views and contributions. 

Who this is for  

This DP will be of interest to all regulated firms across the financial sector. In particular:  

  • banks 
  • building societies 
  • insurers 
  • asset management firms   
  • investment firms 

The discussion will also be of interest to: 

  • industry groups / trade bodies 
  • consumer groups and individual consumers 
  • policy makers and other regulatory bodies 
  • industry experts and commentators 
  • academics and think tanks 
  • civil society 

Respond to this Discussion Paper 

The period for commenting on this Discussion Paper is now closed.

What happens next 

We will consider the feedback before determining our next steps.  


This DP forms part of the commitment made in our strategy for positive change to begin stakeholder engagement on ESG governance, remuneration, incentives and training/certification in regulated firms. It also supports expectations that we ‘have regard to the Government’s ambitions for the provision of sustainable finance’ in the Chancellor’s latest remit letter to the FCA, received in December 2022.