UK Chancellor of the Exchequer Rishi Sunak has revealed that the UK will force financial institutions to publish its plans on how they will transition to net zero.
The UK government will require financial institutions and UK-listed companies to publish the plans on how they will decarbonise and transition.
Sunak told the conference that the UK will aim to become the world’s first net-zero aligned financial centre. He mentioned that this move will initially require asset managers, regulated asset owners and listed companies to publish the plans or provide an explanation why they weren’t able to. Regulators and the UK government also intend to incorporate the transition plans into the UK’s Sustainability Disclosure Requirements.
The government stated its aim is to increase transparency and accountability about the actions companies are planning to take. It stated in a fact sheet, “It will be for the market to determine if these plans are adequate or credible. Investors, through their stewardship, may use their influence and their votes to encourage more ambition or accelerated progress.”
Sunak also remarked that the government intends to establish a ‘Transition Plan Taskforce’ in order to co-ordinate the effort and report back by the end of next year.
Earlier this year, Klarna became the first FinTech to join The Climate Pledge and Race to Zero campaign and commits to reaching zero carbon emissions by 2040.
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