Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 30 April 2025 to Question 47195 on Environment Protection: Finance, what is the policy of the Taskforce for Climate-related Financial Disclosure in relation to investment in (a) defence and (b) nuclear weapons.

The UK government formally endorsed the Taskforce for Climate-related Financial Disclosures (TCFD) framework in 2021 and has mandated TCFD-aligned disclosure for large entities in the private sector since 2022. The FCA also refers to the TCFD framework in its listing rules and has required TCFD aligned reports since 2021 for listed companies.

The new International Sustainability Standards Board (ISSB) Standards, so called S1 and S2, are designed to replace the TCFD framework. These draft standards, which will be known as UK Sustainability Reporting Standards (UK SRS) were published for consultation in June 2025, closing in September 2025.

Both UK SRS, and the TCFD framework that they will replace, 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 nuclear weapons.