FCA Proposes New Transparency and Governance Rules for ESG Ratings Providers

UK moves to tighten oversight of ESG ratings with new FCA rulebook

The UK’s Financial Conduct Authority (FCA) has released a new set of proposed rules to regulate ESG ratings providers, aiming to make ratings more transparent, reliable and free from conflicts of interest. The move follows new legislation passed in October giving the FCA direct oversight of UK and foreign ESG rating firms operating in the country.

The FCA said users of ESG ratings often report problems such as outdated or inaccurate data, unclear methodologies, and weak governance. Nearly 48% of users expressed concerns about transparency. The proposals build on guidance from IOSCO and the ICMA Code of Conduct, which the FCA helped shape.

The rules focus on four areas: transparency, governance, systems and controls, and conflict-of-interest management. Providers would also need a UK presence, must notify companies before issuing a first-time rating, and allow them to correct factual errors.

The consultation runs until March 2026, with final rules expected in Q4 2026, and full implementation in June 2028.

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Further reading: FCA Releases New Proposed Rules to Regulate ESG Ratings Providers

NYC comptroller pushes to drop $42 billion BlackRock mandate over decarbonization failures

New York City Comptroller Brad Lander has recommended that the city’s pension funds drop a $42 billion investment mandate with BlackRock, along with mandates held with Fidelity and PanAgora, after the firms failed to submit decarbonization plans aligned with the pension system’s 2040 net zero goals. Lander said the firms adopted restrictive approaches to engagement following the Trump administration’s new SEC reporting rules, with BlackRock halting proactive proxy engagement for U.S. companies where it owns 5% or more, and Fidelity limiting engagement for both U.S. and non-U.S. companies.

NYC’s pension funds oversee $294 billion in assets across NYCERS, TRS, and BERS. Lander said 46 of 49 managers submitted acceptable plans, but recommended rebidding BlackRock’s U.S. public equities index mandates and terminating Fidelity’s and PanAgora’s active mandates.

BlackRock pushed back, calling the move “politicization of public pension funds” and said its Climate and Decarbonization Stewardship program remains available to the city.

Companies committed to renewable energy and other sustainable switches can use ESG tools for guidance. 

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Further reading: NYC Comptroller Calls to Drop $42 Billion Investment Mandate with BlackRock Over “Inadequate Decarbonization Plans”

UK and Europe face rising threat as aging landfills risk leaking toxic chemicals

A new continent-wide investigation by the Guardian, Watershed Investigations and Investigate Europe reveals that thousands of aging landfills across the UK and Europe sit in floodplains, increasing the risk that toxic waste could leak into rivers, soils and drinking water as climate-driven flooding intensifies. Researchers say many older sites contain plastics, construction debris, and hazardous chemicals such as PFAS and PCBs.

Experts including Patrick Byrne of Liverpool John Moores University and Kate Spencer of Queen Mary University warn that most landfills—an estimated up to 500,000 across Europe—predate modern pollution controls. Mapping identified 61,000 sites, with 28% in flood-risk zones, though modelling suggests the true number could reach 140,000.

Some locations already show contamination: Byrne recorded PFAS at 20 times drinking-water limits in Cheshire, while Greek testing found elevated PFAS, mercury and cadmium near the former Maratholaka landfill. Coastal erosion adds further risk, with 346 landfills exposed in England, Wales and France.

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Further reading: UK and Europe’s hidden landfills at risk of leaking toxic waste into water supplies

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Portugal’s solar park sparks environmental and community concerns

Lightsource bp’s planned Sophia Photovoltaic Solar Park in Portugal’s Castelo Branco district—set to deliver 867 MWp of power and cost €590 million—is facing strong opposition from local municipalities and environmental groups. The project, which spans Fundão, Penamacor and Idanha-a-Nova, lies partly within the UNESCO Naturtejo World Geopark and would require clearing thousands of trees, including holm oaks and cork oaks.

An Environmental Impact Study highlights risks during construction, such as deforestation, soil stripping and impacts on habitats, fauna and nearby historic villages like Castelo Novo, Idanha-a-Velha and Monsanto. Groups including Zero, QUERCUS, FAPAS and Rewilding Portugal warn that up to 1,700 hectares could be affected, potentially undermining tourism, agriculture and landscape heritage.

Municipal leaders argue the project’s scale could cause irreversible damage, while Lightsource bp says it will preserve priority habitats, restore degraded areas and plant 27,000 native trees. The proposal remains early in the licensing process and will undergo another public consultation.

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Further reading: Planned solar park in Portugal raises concerns about environmental damage and local impact

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Which?