Climate considerations now fully embedded across UK principal financial regulators
Wednesday, 24 March 2021 22:08
The UK has extended its global leadership on green finance by
requiring its principal financial regulators to consider climate
change, it was announced today (24 March 2021). The move raises
global ambition ahead of COP26 in November where the UK is aiming
to ensure every financial decision takes climate change into
account. Building on their existing body of climate change-related
work, the Financial Conduct...Request free trial
The UK has extended its global leadership on green finance
by requiring its principal financial regulators to consider
climate change, it was announced today (24 March 2021).
The move raises global ambition ahead of COP26 in November
where the UK is aiming to ensure every financial decision
takes climate change into account.
Building on their existing body of climate change-related
work, the Financial Conduct Authority (FCA) and Prudential
Regulation Committee (PRC), which supervise financial
services firms, should now take into account the
Government’s legally binding commitment to transition to a
net zero economy by 2050, following a letter from the
Chancellor updating their respective remits today.
The letters set out the Government’s ambition to deliver a
financial system which supports and enables a net zero
economy, and mobilises private finance behind sustainable
and resilient growth.
This follows the publication of the updated remits for
the Bank of England’s Monetary Policy Committee (MPC)
and Financial Policy Committee (FPC) at Budget 2021,
which also reflect the importance of environmental
sustainability and the transition towards net zero.
Transitioning to an environmentally sustainable and
resilient net zero economy is a key pillar of the
government’s economic strategy to achieve strong,
sustainable and balanced growth.
The updated remit letters also support the UK’s plans
to boost the competitiveness of its financial services
sector by positioning it to seize the opportunities
from the transition to net zero.
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