Plans to force UK listed companies to disclose how climate change impacts their businesses by publishing explicit data sets has been welcomed by UK Finance, a leading trade group.
It follows measures outlined in the UK government’s Green Finance Strategy, announced on Tuesday (2 July).
Ministers say that the UK financial services sector must be “at the heart” of efforts to tackle climate change and reduce emissions to net zero by 2050.
“The UK has a long history of leading the way in tackling climate change, but we need to do more to protect our planet for future generations,” said City minister, John Glen.
“The City has a vital role to play in securing a greener future for us all. By investing more in sustainable projects, it can not only protect our environment, but also help establish London as the pre-eminent international centre for green finance.
“Today’s Green Finance Strategy will support this ambition, with new initiatives to boost funding for green ventures and ensure the environment is at the centre of all financial decision-making.”
UK Finance – the trade group representing British financial services businesses – welcomed the ambitious proposals, saying that government’s strategy outlines a core role for financial services in helping tackle climate change.
“As an industry we stand ready to play our part in tackling climate change and achieving net zero carbon emissions by 2050,” chief executive Stephen Jones said.
“We also support the intention that publicly listed companies and large asset companies disclose by 2022 the impact of climate change on their activities.
“This builds naturally on the recommendations of the Financial Stability Board-sponsored Taskforce on Climate-related Financial Disclosures (TCFD) that many of the largest companies, within financial services and beyond, are now embedding in their governance, strategy and risk management.”