Greening Finance: A Roadmap to Sustainable Investing

United Kingdom
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The Roadmap outlines HM Treasury’s ambitious plan to transform the UK’s financial system – aiming to align it with the Government’s net zero commitment and making the UK a world leader in green finance and sustainable investing.

What is the Roadmap?

On 18 October 2021, the UK Government released its Roadmap to Sustainable Investing (the Roadmap), as part of a series of announcements in the lead up to COP26. The Roadmap sets out the Government’s proposed approach to tackling climate-related financial risks, encouraging UK investors and businesses to consider environmental, social and governance (ESG) risks in their decision-making processes.

In particular, it is a call to action for the investment and pension sectors – the first step in helping shift investment focus and financial flows to a net-zero and nature positive economy.

The Roadmap builds on a number of other UK initiatives impacting the investment sector, including the 2019 Green Finance Strategy and the FCA’s consultation paper CP21/17 on enhancing climate related disclosure by asset managers, life insurers and FCA regulated pension providers.

This paper summarises the main elements of the Roadmap. We will be publishing detailed analysis of each of the Government’s proposals and their likely impact on our clients.