COP 26: Sunak will force UK firms to publish net zero plans

Financial institutions and companies listed in the UK will have to produce plans highlighting how they will transition to net zero.

The Chancellor of the Exchequer, Rishi Sunak, set out the UK’s plans to become the world’s first net zero aligned financial centre and welcome “historic” climate commitments from private companies at COP 26 today (3 November).

Under the proposals, there will be new requirements for UK financial institutions and listed companies to publish net zero transition plans that detail how they will adapt and decarbonise as the UK moves towards to a net zero economy by 2050. Sustainability disclosures will also be mandatory.

Mandatory
Sunak told COP 26 delegates: “Today I’m announcing that the UK will go further and become the first ever ‘Net Zero Aligned Financial Centre’.

“This means we are going to move towards making it mandatory for firms to publish a clear, deliverable plan setting out how they will decarbonise and transition to Net Zero – with an independent Taskforce to define what’s required.”

He pledges $100bn of public funding alongside $130tr of private capital to support the climate aims.

Sunak also stated that his ambition was to “rewire the entire global financial system for Net Zero”

As part of that, he called for:

• Better and more consistent climate data.
• Sovereign green bonds
• Mandatory sustainability disclosures
• Proper climate risk surveillance
• Stronger global reporting standards

The insurance industry has come under fire from climate activists for its involvement with the fossil fuel industry in recent months, with Lloyd’s being the target of a number of protests.

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