15
Accepted
The financial services industry broadly accepts that ‘greenwashing’ is detrimental to good consumer outcomes and...
Recommendation
The financial services industry broadly accepts that ‘greenwashing’ is detrimental to good consumer outcomes and to the achievement of the net zero goal. The Treasury must work with the FCA to ensure that the regulator has the appropriate remit, powers and priorities, and uses its powers, to prevent ‘greenwashing’ of financial products available to consumers.
Government Response Summary
The government announced a UK green finance taxonomy in November 2020 to provide a common definition for sustainable economic activities, reduce greenwashing, and confirmed that the Treasury is working closely with the FCA on this.
Paragraph Reference
124
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
Clear standards for green investments are essential to maintain trust in the market and mobilise the finance necessary to achieve the net zero goal. In November 2020, the Chancellor announced a UK green finance taxonomy. This will provide firms and investors a common science-backed definition for environmentally sustainable economic activities. This will reduce greenwashing and avoid underestimating investment in the transition. The Treasury is working closely with the FCA on this.
Source
Committee
Treasury Committee
Report
Thirteenth Report - Net zero and the Future of Green Finance
22 Apr 2021
HC 147
Addressee Bodies
HM Treasury
Timeline
Recommendation age
5.3 yrs
Report published
22 Apr 2021