UKSIF comment on updated Green Finance Strategy

A comment from UKSIF’s Chief Executive on today’s update to the UK’s ‘Green Finance Strategy’.

“Today’s update provides some much-needed clarity for our members on the future direction of travel of the UK’s sustainable finance regulatory framework. We see further certainty provided on a range of regulatory initiatives that could help promote investor confidence and support the UK’s climate objectives.

This includes recommitting to delivery of a ‘green taxonomy’, a consultation on climate transition plans for large listed and private companies, steps to promote international interoperability of rules through an assessment of the ISSB’s standards, and a clearer framework for how the UK can become the world’s first net-zero financial centre. We hope to see further, crucial policy detail outlined as soon as possible in the upcoming consultations on many of these areas which we have worked closely on in recent months, and are committed to working constructively with government and wider stakeholders.

Separately, it is very welcome to see consideration given by government to clarification to fiduciary duty. We are optimistic that this could help address the present confusion we see among pension schemes and more widely, and how environmental, social, and governance (ESG) risks, opportunities, and impacts should be considered as part of these duties. We look forward to contributing towards this important work, and hope that this clarification, in time, could help to unlock capital flows in the wider economy.”—James Alexander, Chief Executive, UK Sustainable Investment and Finance Association (UKSIF)