Financial Services and Markets Bill

Baroness Fookes Excerpts

Committee stage
Tuesday 7th March 2023 Grand Committee

[Baroness Meacher (CB)]

I think we had got on to Amendment 199. Is that correct?

[The Deputy Chairman of Committees (Baroness Fookes) (Con)]

Amendment 168 is the lead amendment; the other amendments are grouped with it. People can debate any amendment within the group.

[Baroness Meacher (CB)]

Amendment 168 is the lead amendment; that is absolutely right. I think we had got on to Amendment 199. Is that correct, Minister? Are you happy with that?

[Baroness Meacher (CB)]

One or two people had talked to Amendment 199 and I was just about to do the same. Is that okay?

[The Deputy Chairman of Committees (Baroness Fookes) (Con)]

It is in order to speak to any amendments in the group.

[Baroness Meacher (CB)]

I apologise; I am completely confused.

The due diligence system reintroduced for companies under Schedule 17 to the Environment Act is world-leading in its intentions. However, we have to finish the job to end our financing of deforestation. The GRI Taskforce has been unequivocal in its advice that financial actors should conduct deforestation due diligence too for their own sake as well as for everyone else’s. In the meantime, as somebody mentioned last time, Britain’s financial institutions are contributing $16.6 billion to businesses implicated in deforestation.

This is a huge global issue. Experts say that we must end commodity-driven deforestation by 2025 if we are to limit global warming to 1.5 degrees centigrade. At present, as a result of those investments, climate-critical tropical forests are shrinking. This is absolutely appalling. The UN’s high-level climate champions have begun to refer to deforestation as the new coal in investors’ portfolios. There should be no investment in companies involved in deforestation. It is quite simple.

The amendment responds powerfully to the GRI Taskforce’s advice. It has significant cross-party backing in the House of Commons. The Government are inclined to go for a weaker policy against the advice of their own expert task force on deforestation. I hope that the Minister will do all she can to persuade her colleagues in the other place to support Amendment 199 before Report. Rishi Sunak has promised that the UK

“will be the world’s first net zero financial centre”.

His support for Amendment 199 is an obvious step on the way. I thank the WWF, Greenpeace, Global Witness and Mighty Earth for their excellent joint briefing. I call on all noble Lords to support Amendment 199.