Chancellor Rishi Sunak has spoken at COP26, using the platform to promise to turn the UK into “the world’s first net-zero aligned financial centre”. This involves requiring listed companies in the UK to publish their plans for transitioning to low-carbon business by 2023. These plans must include targets to mitigate climate risk; detail interim goals to 2050, and the measures necessary to meet them.
The ministry said: “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 a net-zero economy by 2050.”
A notable omission from Sunak’s plan is any mandatory commitment to net zero for companies or a ban on investment in carbon-intensive activities. Investors will be left to decide for themselves if companies’ plans are adequate and credible.
Catherine McGuinness, policy chair at the City of London Corporation, commented:...