Investments: Environmental, Social and Governance Criteria

Lord Lexden Excerpts

Wednesday 2nd March 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, I do not think we will be taking quite that approach to a legal definition of greenwashing. We will, through the green taxonomy, provide a clear way by which firms are transparent and what counts towards their sustainability claims, accompanied by regulation from the FCA on the consumer-facing label, but we will also look at whether firms that provide ESG data and ratings should be included in regulation.

[Lord Lexden (Con)]

The noble Baroness who asked the Question referred to the case for fresh legislation in this area. Do the Government believe that further legislation is required; and, if so, when will it be introduced?

[Baroness Penn (Con)]

My Lords, I believe much can be done under existing powers in FCA regulation and the UK’s green taxonomy, but if any legislation is needed, it will be put forward in the usual way.