Businesses will be required to disclose the impact of their activities on the environment, under new rules to be introduced by ministers.
The new sustainability disclosure requirements (SDR) will mean an investment product will have to describe the environment impact of the programmes that it finances, and will also apply to pension schemes.
However, the government has not set out whether the new regime will be compulsory and if there will be sanctions for firms which do not comply. It has also not set a date for when the sustainability requirements will enter into force.
“We want sustainability to be a key component of investment decisions, and our plans will arm investors with the right information to make more environmentally-led decisions,” said Chancellor Rishi Sunak.
The announcement comes weeks ahead of November’s COP26 summit which Prime Minister Boris Johnson will host in Glasgow.
(Benjamin Fox | EURACTIV.com)