Source · Select Committees · Treasury Committee
Recommendation 18
18
Accepted
Paragraph: 138
On the concerns around the constituents of indices described as ‘green’, we note the requirements...
Recommendation
On the concerns around the constituents of indices described as ‘green’, we note the requirements under the Benchmarks Regulation, which should be used to help consumers make better choices. However, it is clear that in some cases the labels or descriptions of ‘green’ or ‘climate-related’ indices do not necessarily match legitimate consumer expectations of what they would commonly be understood to mean. The Treasury and FCA should review the provisions in the legislative and regulatory framework and ensure that the labels and descriptions of indices accurately reflect their content, in line with consumer expectations.
Government response summary AI-generated
The government highlights the existing Benchmarks Regulation for obliging providers to disclose sustainability metrics, which aids consumer verification. The Treasury will continue to work closely with the FCA on these issues to ensure accurate index labelling.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
138
Government Response
Accepted
HM Government · verbatim extract
Accepted
The Benchmarks Regulation obliges all providers of benchmarks to disclose sustainability metrics or declare that they do not have a sustainability objective. This will help consumers verify the green credentials of benchmarks with a sustainability objective. The Treasury will continue to work closely with the FCA on these issues. Please refer to the FCA’s response for further information.
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