The Chancellor has published ‘Greening Finance: A Roadmap to Sustainable Investing‘. The document lays out the government’s ambition to align the financial system with the UK’s net-zero commitment, highlighting the UK’s position as a leader in international efforts to bring about such change. It identifies the importance that shifting investments towards sustainable projects and green technology has in achieving this aim.
The document establishes three phases of the greening of the financial system and focusses on the first phase, namely ensuring that information is available to enable every financial decision to take account of climate change and the environment. The second phase is to mainstream the information into business and financial decisions, with the third and final stage involving shifting financial flows across the economy to align with a net-zero economy.
Delivery of the first phase will occur via implementation of the Sustainability Disclosure Requirements (SRD). This will require businesses to disclose their environmental impact, providing consumers with increased transparency over their investments. Every investment product must set out the environmental impact of the activities it finances.
Specific information relating to the reporting requirement under SRD will be developed following public consultation.