Investments: Environmental, Social and Governance Criteria

Lord Bridges of Headley Excerpts

Wednesday 2nd March 2022 Lords Chamber

[Baroness Penn (Con)]

The work that we are doing to green finance and green our economy means that there will be far greater transparency on the impact of firms on climate change and the wider environment. This will allow firms to make those kinds of decisions. The noble Lord talked about divestment. In terms of our approach or view on that with regard to climate activities, we expect investors to use SDR disclosures to integrate climate into stewardship activities. That may eventually lead to divestment, but beforehand, they may use their position as investors in major companies to encourage them to greener positions before considering divestment altogether.

[Lord Bridges of Headley (Con)]

My Lords, I declare my interest as an adviser to Banco Santander and apologise because I probably should have mentioned that when I spoke on the previous Question. Can my noble friend clarify, in the Government’s approach to the green taxonomy and ESG, how nuclear and certain types of gas power stations will be classified? Will they be classified as green and environmental?

[Baroness Penn (Con)]

My Lords, the Government set up a specific panel to look at those very questions, and I cannot pre-empt the outcome of its work.