The Environmental Audit Committee’s recent report on ‘Greening
Finance: embedding sustainability in financial decision making’
included several recommendations for the Financial Conduct
Authority and the Committee is today publishing the regulator’s
response.
MP, Chair of the Environmental
Audit Committee, said:
“Climate change poses growing financial risks to a range of
investments – from food and farming to energy and infrastructure.
The low-carbon transition also presents exciting opportunities
for British businesses in clean energy, transport and tech.
“We are pleased that the FCA is acting on one of our
recommendations and is consulting on rule changes that would
require the Independent Governance Committees of contract-based
pensions to report on how they manage environmental risks and how
they take account of members’ ethical concerns.
“The FCA has not committed to change its Listing Rules to
specifically require climate-related financial disclosures when
companies offer stock on the London Stock Exchange through
Initial Public Offerings (IPO). However, the regulator has said
that it will now highlight to issuers the need to make adequate
disclosures regarding materially important information, such as
how environmental risks affect the valuation of a listed
company’s securities and how these matters are managed by the
company.”
The letter can be read
here.
Membership of the Committee:
http://www.parliament.uk/business/committees/committees-a-z/commons-select/environmental-audit-committee/membership/
