Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact on levels of investment in the UK defence industry of the requirement under Commission Delegated Regulation (EU) 2020/1818 that Paris-aligned Benchmarks and UK Climate Transition Benchmarks exclude companies involved in activities related to controversial weapons; and whether the Government has evaluated any wider (a) economic and (b) investment impacts of that requirement.

As set out in response to PQ UIN 43043 on 9 April 2025, The UK Benchmarks Regulation sets out the requirements for UK Climate Transition Benchmarks and UK Paris-aligned Benchmarks.

The Financial Conduct Authority (FCA) monitors and supervises benchmark administrators according to the Benchmarks Regulation . The FCA published a statement regarding their position on sustainability regulations and UK defence investment on 11 March 2025.

The Treasury launched a consultation on the future regulatory regime for benchmarks and benchmark administrators on 17 December 2025. This consultation seeks views on proposals to reform the UK’s existing benchmarks regime, including the Climate Transition Benchmark and Paris-Aligned Benchmark labels.