UK Green Taxonomy

Baroness Hayman Excerpts

Thursday 3rd November 2022 Lords Chamber

[Baroness Penn (Con)]

The Government are taking a number of steps. The FCA, for example, has consulted on a sustainable investment-labelling scheme so that, when consumers and investors are told that they are investing sustainably, they have better information to show that that is based on an objective assessment of those investments.

[Baroness Hayman (CB)]

My Lords, a year ago, the Prime Minister, then the Chancellor, made the commitment at COP 26 that the UK will be

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

Does the Minister—whom I welcome back to the Front Bench—agree that, to achieve that, we need a robust and respected taxonomy for green investment? Does she also agree that this is an increasingly competitive area, with other countries having exactly the same objective? Does she accept the need for urgency in this area?

[Baroness Penn (Con)]

I agree that the green taxonomy is an essential part of being a leader in green finance. The UK has led the way: we were the first country to lay regulations to make reporting mandatory under the TCFD framework and firms listed on the London Stock Exchange have the highest sustainability disclosure rate of any global financial centre. But, if we want to continue that leadership, we need to continue to make progress. We have laid out a number of future steps under our road map. I accept that some have been delayed, and it is for us to continue to work to make better progress, to ensure that we continue to lead in this area.