The group will be co-chaired by representatives from M&G, Moody’s, the London Stock Exchange Group and Slaughter and May.

As financial services integrate ESG strategies into their business practices, they remain increasingly reliant on third party ESG data and ratings services, the regulator warned.

The FCA supports the introduction of ‘regulatory oversight’ over certain ESG data and rating providers.

The group will include investors, ESG data and rating providers, and rated entities. It will meet for the first time later this year.