Treasury orders firms to reveal climate change impact on profits

the UK Treasury has ordered that Britain’s leading companies, investment funds and pension schemes, must be able to show by 2022 how climate change and measures such as a ban on plastics might impact their finances.

The new requirement comes as the government attempts to boost the UK’s green credentials.

As a result, the Treasury is also urging City banks to play be more involved in supporting the UK’s attempt to reach the net-zero carbon economy target by 2050. Financial services firms will also be expected to disclose the impact of climate change on their profits.

This could help the City be a green finance capital that funds green investment.

John Glen, the City minister, said the green finance strategy would help establish London as “a pre-eminent international centre for green finance”. He said: “The UK has a long history of leading the way in tackling climate change, but we need to do more to protect our planet for future generations.”

Glen will also call for regulators such as the Financial Conduct Authority and the Financial Policy Committee to take climate change into account when carrying out their work.

Other measures set to be announced include the government jointly funding a Green Finance Institute with the City of London, establishing a £5m Green Home Finance Fund to help pilot products like green mortgages and launching the Green Finance Education Charter.