20 September 2023
If you are covering the news that the government is to downgrade its climate change commitments, please find below a comment from Gemma Woodward, head of responsible investment at Quilter Cheviot:
“Today’s news that the government is going to significantly downgrade its climate change commitment means the burden is falling squarely on private industry. This lack of ambition and clarity is clearly leaving some very frustrated, and for investment companies it leaves the impression that it is their problem to solve, rather than working together with government.
“For some time, many UK companies have been reporting in line with the four pillars of Task Force on Climate-Related Financial Disclosures, namely: governance, strategy, risk management, and metrics and targets. Whilst the government is finally rolling this out across the public sector, it has subsequently decided that much of the action can wait.
“Without clear government policy and commitment to a climate transition, the ambition and trajectory of change within the UK will be severely diminished. From a responsible and sustainable investment perspective it has to be business as usual, however this calls into the question the future decision making of investors and allocators of capital when there is no clear impetus from government. Business investment is increasingly turning to transition projects, and with the US and EU unveiling huge incentives, the UK risks being further left behind from a capital markets perspective and present itself as a place that is not open for business.”
