UK set to enforce mandatory climate reporting with Green Finance strategy
(3 July 2019 – United Kingdom) The United Kingdom (UK) Treasury is considering rules forcing corporates to disclose climate change related risks as part of a broader drive to boost investment for green priorities.
The UK government has tasked the financial services sector to take the lead on Environmental, Social and Governance (ESG) funding with the UK officially the first G7 nation to enact a net-zero emissions target into law.
The Green Finance Strategy is directed at delivering on goals endorsed by the main political parties to reduce net greenhouse gas emissions to zero by 2050. The reporting commitment would shift British weight behind measures endorsed by Bank of England (BoE) Governor Mark Carney in his role as head of a global panel on financial stability. The government intends to jointly fund the Green Finance Institute with the City of London to enhance the UK’s reputation as a global hub for sustainable investing. Separately a £5 million Green Home Finance Fund will promote green mortgages and encourage homes to retrofit for efficiency gains.
“Climate change and the transition to a low-carbon economy will transform financial services markets. This brings unprecedented challenges for us in mitigating risks and enabling positive changes” said UK Financial Conduct Authority (FCA) CEO Andrew Bailey.