UK lawmakers name for motion on monetary greenwashing
LONDON (Reuters) – Britain ought to think about making environmental labeling necessary for shopper monetary merchandise and instruct regulators to cease deceptive claims or “greenwashing”, lawmakers mentioned on Thursday.
The UK authorities has given extra precedence to inexperienced points this 12 months because it prepares to host a significant United Nations local weather summit often called COP26. However he has been criticized by environmental teams for missing particulars in his plans.
In a brand new report, the Home of Commons All-Get together Treasury Committee urged the federal government to state how a lot it might price to satisfy its purpose of internet zero emissions by 2050 and to make sure that monetary laws adjust to this. .
He additionally mentioned the federal government ought to reveal the quantity of the premium it was ready to supply traders to purchase new “inexperienced” authorities bonds somewhat than standard debt.
“The UK is a world chief in monetary companies. When the eyes of the world are on us for COP26, we have to present that we can be a inexperienced finance powerhouse to assist obtain internet zero, ”mentioned committee chair Mel Stride.
To do that, the UK Finance Division ought to seek the advice of on the necessity to make inexperienced labels necessary for investments and provides regulators the facility to make sure that such labeling is just not deceptive, based on the report.
“It’s clear that in some circumstances the labels or descriptions of ‘inexperienced’ or ‘local weather associated’ indices don’t essentially correspond to the official expectations of customers as to what they’d typically imply,” he mentioned. declared.
Defining inexperienced investing is a world problem. The European Union ought to require the bloc’s banks to outline local weather dangers and exposures from subsequent 12 months, utilizing a hard and fast taxonomy.
British lawmakers have beneficial adopting the same categorization forward of the COP26 summit, to bolster efforts to agree on constant worldwide guidelines.
Reporting by David Milliken; Edited by Steve Orlofsky