Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 4 March 2025 to Question 33375 on Environment Protection: Finance, whether the Taskforce for Climate-related Financial Disclosures rules for listed companies to refer to the new International Sustainability Standards Board standards will allow for investments in (a) defence companies and (b) companies supporting Trident nuclear deterrent renewal.

The new International Sustainability Standards Board (ISSB) Standards, so called S1 and S2, are designed to replace the Taskforce for Climate-related Financial Disclosure (TCFD) framework.

These are disclosure standards that ask firms to disclose financially material climate related risks to their business. The objective of these is to provide investors with consistent, comparable and reliable information about companies' sustainability-related risks and opportunities. These standards are designed to enhance transparency and do not dictate how a company should invest. They do not prevent or impose restrictions on investment in specific sectors, including defence or the Trident nuclear deterrent.

The previous government committed to establishing a framework to assess the suitability of ISSB Standards for endorsement in the UK. A Technical Advisory Committee of external experts have conducted a detailed assessment of the ISSB’s inaugural standards, and this process has now concluded. The government aims to consult on the UK Sustainability Reporting Standards (UK SRS) shortly, after which point they will be made available for use later in 2025.