Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has had discussions with the Financial Conduct Authority on the adequacy of climate risk advice provided by investment consultants to (a) local authorities and (b) other third parties.

Investment consultants play an important role in advising local authorities and other third parties on a range of areas such as investment strategy, strategic asset allocation and climate risk.

Specific conversations have not taken place between the Chancellor and the Financial Conduct Authority (FCA) on the provision of this advice. In general, the advice that investment consultants provide does not constitute a regulated activity and is therefore not within the remit of the FCA.

The Government is fully committed to tackling climate change and delivering on our legal obligations to reduce emissions to net zero by 2050, our interim targets and our international commitments. We recognise the significant role that Local Authorities will play in the delivery of our net zero ambitions. Local Authorities have deep understanding of the local area and decide how best to serve their communities. They have flexibility in how they take action to address Net Zero, and can seek and assess their own guidance to determine what works best for them depending on their varied opportunities, needs and circumstances in their area.