Author: AxiomHQ – axiomhq.com
In October 2021, the UK government published its roadmap for sustainable investing. In the previous month, it had raised £10 billion for green projects via its first green gilt, which launched the UK’s green financing programme.
How can firms help?
Financial Services is seen as a key player in helping the UK meet its sustainability objectives. Investments in the Environment, Social and Governance (ESG) markets has grown significantly as investor demand increases. According to FCA’s Financial Lives Survey, 70% of the UK public wanted their money to make a positive difference to people and the planet. The Investment Association’s data indicates that 49% of UK’s assets were integrating ESG into their investment processes.
The UK’s roadmap outlined key steps:
- Getting the right information to market participants
- Definition of ‘green’
- Stewardship of capital
Provision of Information:
The provision of the right information has been addressed by disclosure requirements. This means that firms provide information to all stakeholders perhaps via an annual report. Some firms do voluntarily publish information relating to sustainability, but there is inconsistency regarding content. The introduction of a sustainability disclosures regime aims to help the flow of comparable information to enable informed decision making.
There are two initiatives which aim to enable investment decisions:
- Sustainability Disclosure Requirement
- Sustainability Investment Labels
How do we implement these initiatives achieve?
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