FS22/4: ESG integration in UK capital markets

We summarise feedback to our discussion chapter (in CP21/18) on environmental, social and governance (ESG) integration in UK capital markets and set out our potential next steps.

Read FS22/4 (PDF)

In our discussion chapter, we asked for feedback on potential harms that may require policy intervention and on actions we could take to enhance market effectiveness and promote a sound ESG data ecosystem.  

We sought views on: 

  • issues related to green, social, sustainability and sustainability-linked debt instruments (ESG-labelled debt instruments), including: 
    • prospectus and ‘use of proceeds’ (UoP) bond frameworks 
    • the role of verifiers and second party opinion (SPO) providers 
  • ESG data and rating providers 

This Feedback Statement brings together respondents’ views and sets out our policy response and potential next steps. 

We have also published Primary Market Bulletin 41, which elaborates on our response to stakeholder feedback and clarifies our expectations of issuers of ESG-labelled debt instruments.

Who this applies to   

This FS is likely to be of interest to, but not limited to:  

  • regulated firms 
  • listed companies and their advisors and sponsors 
  • investors and asset owners 
  • verifiers and SPO providers 
  • accountants and auditors 
  • ESG data and rating providers 
  • consumer groups and individual consumers 
  • industry groups, trade bodies and civil society groups 
  • policymakers and regulatory bodies 
  • industry experts and commentators 
  • academics and think tanks 


In our ESG Strategy, we stress that market participants and consumers must be able to trust green and other ESG-labelled financial instruments and products. A key outcome of our ESG Strategy is to promote ‘integrity in the market for ESG-labelled securities, supported by the growth of effective service providers – including providers of ESG data, ratings, assurance and verification services.’ This FS and the accompanying Primary Market Bulletin will support this outcome by clarifying our views on current practice in ESG-labelled debt markets and potential next steps in relation to ESG data and rating providers. 

Next steps   

Having reflected on the feedback received, we summarise the key policy actions we are taking, including the publication of Primary Market Bulletin 41. We also signal our potential future direction in respect of ESG-labelled debt markets and ESG data and rating providers.