Yesterday’s launch coincided with COP26 Finance Day and reflects the watchdog’s commitment to help investors put environmental, social and governance (ESG) matters at the heart of their investment decisions.

The FCA is also gathering feedback on supporting entity-level and product-level disclosures.

In its most recent Financial Lives survey, the FCA found 80% of respondents wanted their money to ‘do some good’, while also providing a financial return, 71% wanted to ‘invest in a way that is protecting the environment’ and 71% would not put their money into ‘investments which are unethical’.

Nikhil Rathi, chief executive of the FCA, said: “It is vital that we innovate to support industry’s shift to a more sustainable future. That is why the FCA has been leading from the front.

“Developing consistent, trusted standards are a vital part of that, giving investors the confidence to put their money where it can deliver the most sustainable outcome.

“The strategy we have published today puts these standards front and centre, supported by supervision and enforcement where firms fail to meet them.”

The discussion paper forms part of the FCA’s new ESG strategy, which was also released yesterday and sets out the FCA’s role in supporting the transition to a more sustainable economy, working with industry, listed companies, government and international partners.