Government should consult more with financial sector on road to net zero in UK, investment firm says

Thursday, December 16, 2021 7:32 a.m.

The government should consult on a “transitional taxonomy” to ensure the financial sector understands the country’s net zero path, urged the British Association for Sustainable Investment and Finance (UKSIF).

In a government policy briefing today, the group will also warn policymakers to avoid a mandatory approach to carbon targets and instead encourage a wider range of companies to pursue climate-conscious initiatives.

It follows COP26 last month, where Chancellor Rishi Sunak challenged the financial sector to make the UK the world’s first financial center aligned with net zero.

But in the net zero rush, there should be more meaningful engagement between savers and asset managers, the group added, to ensure that investments don’t go into fossil fuel projects or high carbon content on behalf of customers.

UKSIF will also urge the government to introduce a carbon pricing system, like the European Union.

“Our collective understanding of a net zero financial sector remains nascent, and it will therefore be essential for the sector to engage closely with the government to identify the policies and actions needed in the years to come to move towards ambition. leading UK. Said Managing Director James Alexander.

“Our latest views on areas that should be carefully considered include: greater clarity on the government’s future net zero investment plans, strengthening investor stewardship and developing a requirements regime leading sustainability disclosure and green taxonomy to comprehensively address sustainability risks and tackle the serious threat posed by greenwashing.

Comments are closed.