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ESG 1.1 Purpose and application


ESG 1.1.1 G

1The ESG sourcebook sets out rules and guidance concerning a firm’s approach to environmental, social and governance matters.

ESG 1.1.2 G

1 ESG 2 contains rules and guidance regarding the disclosure of climate-related financial information consistent with TCFD Recommendations and Recommended Disclosures.

ESG 1.1.3 G

1The disclosure requirements within ESG 2 relate to either the assets that a firm manages or administers generally, published in a TCFD entity report, or assets relating or corresponding to particular financial products or services, disclosed via TCFD product reports.

ESG 1.1.4 G

1The disclosures are intended to help meet the information needs of market participants, including a firm’s institutional clients (e.g. pension trustees, employers and corporate investors) and consumers of their products (e.g. pension scheme members and retail investors), in relation to the climate-related impact and risks of a firm’sTCFD in-scope business.

ESG 1.1.5 G

1The FCA recognises that at least for a transitional period there may be data and methodological challenges. Nevertheless, we expect firms to provide sufficient information to clients and consumers. Firms should still disclose metrics and quantitative scenario analysis or examples in accordance with the rules in this sourcebook where such disclosure would remain fair, clear and not misleading. Firms should also appropriately explain any limitations on their ability to disclose and the steps being taken to address those limitations.

ESG 1.2 General application

ESG 1.2.1 R
  1. (1)

    1The rules in this sourcebook apply to a firm of a type listed in column 1 of the table at ESG 1.2.1 R(2) in relation to the TCFD in-scope business carried out from an establishment maintained by it in the United Kingdom as described in column 2.

  2. (2)

    This table belongs to ESG 1.2.1R(1).

    Column 1: Type of firm

    Column 2: TCFD in-scope business

    Part A: Asset managers

    Any firm

    Portfolio management

    UK UCITS management company

    Managing a UK UCITS

    ICVC that is a UCITS scheme without a separate management company

    Managing a UK UCITS

    Full-scope UK AIFM

    Managing an AIF

    Small authorised UK AIFM

    Managing an AIF

    Part B: Asset owners

    Insurer or pure reinsurer

    Providing insurance-based investment products

    Operating a personal pension scheme (excluding a SIPP) or stakeholder pension scheme

    Operating a SIPP, but only in relation to SIPPs containing insurance-based investment products provided by the firm

    Other asset owners (other than insurers or pure reinsurers)

    Operating a personal pension scheme (excluding a SIPP) or stakeholder pension scheme

    Operating a SIPP, but only in relation to SIPPs containing any of the following provided by the firm:


    a unit


    an interest in a closed-ended investment fund


    a pre-set investment portfolio

ESG 1.2.2 R

1A firm is exempt from the disclosure requirements under ESG 2 if and for as long as the assets under administration or management in relation to its TCFD in-scope business amount to less than £5bn calculated as a 3-year rolling average on an annual assessment.