London Daily

Focus on the big picture.
Thursday, Aug 28, 2025

UK firms will have to disclose climate impact

UK firms will have to disclose climate impact

Some large UK businesses will have to start disclosing their environmental impact, under new rules set to be brought in by the Treasury.

The requirements will also apply to investment products and pension schemes.

It comes ahead of November's COP26 meeting in Glasgow, where world leaders will discuss their climate commitments.

Experts say the UK, which is hosting the event, is not currently on track to meet its own emissions targets.

Boris Johnson has pledged to cut emissions by 78% by 2035, compared with 1990 levels.

The Treasury said the new sustainability disclosure requirements (SDR) mean an investment product will now have to set out the environmental impact of the activities it finances.

In addition, a company's sustainability claims will have to be justified "clearly", and their net zero transition plans properly set out.

The aim is to combat "greenwashing", where firms make misleading claims about their environmental commitments.

But the government said the information will "only be impactful" if customers and investors actually use it.

Chancellor Rishi Sunak said: "We want sustainability to be a key component of investment decisions, and our plans will arm investors with the right information to make more environmentally-led decisions."

He said the rules will "set new global standards for sustainability that will boost the economy, protect the planet and support our net zero goals".

It is unclear when the rules will come in, or what will happen to firms that do not comply. Details of the specific reporting requirements will only be developed after a public consultation.

'Positive step'


Mr Sunak first mentioned SDRs in July and has announced these next stages for the requirements in the report: "Greening Finance: A Roadmap to Sustainable Investing".

Sam Alvis, from the Green Alliance think tank, said it was a "positive step in greening the private sector".

"While new green finance is vital, stopping money going into environmentally destructive investments is key. The upcoming spending review is an opportunity for the chancellor to apply the same rules for public spending," he added.


Rain Newton-Smith, chief economist at the Confederation of British Industry, said greater clarity on environmental impact "will help investors channel finance into projects that are aligned with net zero targets and will reduce carbon emissions across our economy".

But Heather McKay from E3G, an independent climate change think tank, told the BBC the government would need to send clear signals about "what is green and what is not" to ensure companies really change how they operate.

She said this would be a "crucial step" to tackling greenwashing.

Without the right information available, Jessica Fries, chairman of Accounting for Sustainability said that investors and pension funds have made decisions "in the dark".

"As a global centre of finance, it will be important that the recommendations align with emerging requirements globally," Ms Fries added.

Barbara Davidson, of think tank Carbon Tracker, said better enforcement of current accounting requirements was also required to combat greenwashing.

"Without this, investors do not have the requisite information about the effects of climate change for their decision-making," she said.

Boris Johnson's government is currently on track to cut only about a fifth of UK emissions by 2035, compared with 1990s levels, according to a group of experts that advises the government.

Newsletter

Related Articles

0:00
0:00
Close
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Starmer Should Back Away from ECHR, Says Jack Straw
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
Chinese AI Chipmaker Cambricon Posts Record Profit as Beijing Pushes Pivot from Nvidia
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Welcome to The Definition of Insanity: Germany Edition
Just a reminder, this is Michael Jackson's daughter, Paris.
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
×