City firms will be asked to reveal what steps they are taking to combat climate change as part of the government’s Green Finance Strategy being unveiled today.
Listed companies and large asset owners will have until 2022 to disclose how climate change risks impact their activities, City Minister John Glen will announce today.
Glen will also call for regulators such as the Financial Conduct Authority and the Financial Policy Committee to take climate change into account when carrying out their work.
The announcement comes as Charles Counsell, chief executive of The Pensions Regulator, warned environmental changes threatened the stability of the services sector.
He said: “Climate change is no longer simply a social responsibility issue.
“It is a core financial risk impacting broadly across business, the economy and markets.”
Other measures set to be announced include the government jointly funding a Green Finance Institute with the City of London; establishing a £5million Green Home Finance Fund to help pilot products like green mortgages; and launching the Green Finance Education Charter to ensure financial service qualifications and certificates include an understanding of green finance.
Speaking at the third Green Finance Summit in London, Glen is expected to say: “The City has a vital role to play in securing a greener future for us all.
“By investing more in sustainable projects it can not only protect our environment, but also help establish London as the pre-eminent international centre for green finance.
“Today’s Green Finance Strategy will support this ambition, with new initiatives to boost funding for green ventures and ensure the environment is at the centre of all financial decision-making.”
The Green Finance Strategy comes a week after Labour’s John McDonnell set out his vision for radical reform of the services sector – including giving government the ability to delist companies and block private investment into companies he deems “destabilise” the economy.