London Daily

Focus on the big picture.
Saturday, Jul 19, 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
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
×