Some large UK businesses will have to introduce environmental disclosure requirements

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Some large UK businesses will have to introduce environmental disclosure requirements

Some large UK businesses will have to introduce new environmental practices, under new rules made public by the Treasury.

The requirements will also apply to investment products and pension schemes.

It comes before the recent UN climate change meeting in Glasgow in November, where world leaders will discuss their climate commitments.

Experts say the UK, which is hosting the event, is not currently on track to meet its own emissions targets.

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The Treasury said the new SDR disclosure requirements mean that an investment product will now have to set out sustainability, environmental impact of the activities it makes.

In addition, a company s sustainability claims will have to be clearly justified and their net zero transition plans well prepared.

The aim is to reduce the misleading environmental claims of firms.

But the government said the information will only be effective if customers and investors actually use it.

Chancellor Rishi Sunak said: We want sustainability to be a key component of investment decisions, and our plans will arm investors with the right information to make more eco-led decisions. He said the rules will set new international standards for sustainability that will support the economy, protect the planet and boost net zero goals. It is unclear when the rules will come in or what will happen to firms that don't comply? Details of specific reporting requirements will be developed only after public consultation.

Boris Johnson s government first mentioned SDRs in July and announced these next stages for the requirements in the report: Greening Finance: A Roadmap to Sustainable Investment Bonds