Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what steps they are taking to promote good practice in combating climate change to (1) listed, and (2) unlisted, companies.

The Government is working with listed and unlisted companies to encourage ambitious action on climate change.

Listed

• From 6 April 2022 the UK will become the first G20 country to enshrine in law mandatory Task Force on Climate-Related Financial Disclosures (TCFD)-aligned requirements for Britain’s largest companies and financial institutions to report on climate-related risks and opportunities, subject to Parliamentary approval of regulation laid on 28th October 2021.
• Over 1,300 of the largest UK-registered companies and financial institutions will have to disclose climate-related financial information on a mandatory basis – in line with recommendations from the TCFD. This will include many of the UK’s largest traded companies, banks and insurers, as well as private companies with over 500 employees and £500 million in turnover.
• We are requiring more disclosure and transparency in the markets on climate risks and opportunities through the introduction of Sustainability Disclosure Requirements, as outlined in Greening Finance: A Roadmap to Sustainable Investing. These bring together and streamline UK sustainability reporting requirements, including reporting aligned with the Taskforce for Climate-Related Financial Disclosures recommendations.
• As announced by my Rt. Hon. Friend Mr Chancellor of the Exchequer at COP26, listed companies will also be required to publish transition plans that consider the Government’s net zero commitment or provide an explanation if they have not done so. As standards for transition plans emerge, the Government and regulators will take steps to incorporate these into the UK’s Sustainability Disclosure Requirements and strengthen requirements to encourage consistency in published plans and increased adoption by 2023.

Unlisted

Ahead of COP 26, my Rt. Hon. Friend the Prime Minister launched the Together for our Planet Business Climate Leaders’ campaign. The aim of the campaign is to encourage small businesses to make a net zero commitment via the UK Business Climate Hub and get help and advice on reducing their emissions. Tens of thousands of small and micro businesses were reached through this initiative and over 2,400 UK small businesses have pledged to go green and reduce their emissions.