Sunak: Net zero will be mandatory for firms
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Chancellor Rishi Sunak has said that the UK will become the first ever ‘Net Zero Aligned Financial Centre’, making it mandatory for firms to have a net zero plan in place.
Speaking at COP26 in Glasgow on Wednesday, the chancellor said firms will be required to publish "a clear, deliverable plan setting out how they will decarbonise and transition to Net Zero – with an independent Taskforce to define what’s required".
Speaking at COP26 in Glasgow on Wednesday, the chancellor said firms will be required to publish "a clear, deliverable plan setting out how they will decarbonise and transition to Net Zero – with an independent Taskforce to define what’s required".
'Rewire the global financial system for net zero'
Sunak also highlighted that the Glasgow Financial Alliance for Net Zero has brought together financial organisations with assets worth over $130tn of capital to be deployed.
"This is an historic wall of capital for the net zero transition around the world. What matters now is action: to invest that capital in our low carbon future. To do that, investors need to have as much clarity and confidence in the climate impact of their investments as they do in the traditional financial metrics of profit and loss. So our third action is to rewire the entire global financial system for Net Zero," he said.
This includes "better and more consistent climate data", sovereign green bonds, mandatory sustainability disclosures, "proper climate risk surveillance", as well as stronger global reporting standards.
The Financial Conduct Authority has on Wednesday invited views on creating sustainability labels for investment products, and large pension funds, pension providers, asset managers and listed firms are or will already be subject to reporting in line with the Taskforce on Climate-related Financial Disclosures.
