15 July 2025
If you are covering the decision by the UK government not to proceed with an UK Green Taxonomy, as part of today’s Mansion House announcements, please find below a comment from Gemma Woodward, head of responsible investment at Quilter Cheviot:
“The government’s decision not to proceed with an UK Green Taxonomy may look on the surface as if it is abandoning its ambitions to lead on sustainable finance. However, this is far from the case given recent days has seen three consultations issued focused on sustainability reporting, a registration scheme for providers of assurance for sustainability related financial disclosures and transition planning.
“If anything, it is pleasing to see the government recognise that an UK Green Taxonomy may have limited impact at a time when the industry is already contending with a slew of regulations. Rachel Reeves said she wants the UK to be a global leader in sustainable finance, and as such we cannot take this development as a sign that strategy has changed.
“The government has promised to provide a ‘road map of future regulatory changes’ as part of the next consultation phases. This is something we would all welcome as this will set out a, hopefully, robust foundation and future pathways for sustainable finance. The global regulatory picture is still incredibly fragmented, and with landmark regulations from the past 12 months still being embedded into processes, any clear picture that can be provided by policy makers of the direction of travel will be vital and the only way we can help combat issues such as greenwashing.”
