UK Finance

Sector

Financials

Headquarters

London, United Kingdom

Official Website

ukfinance.org.uk

Climate Finance Policy Engagement Analysis

Climate Lobbying Overview: UK Finance appears to have mixed engagement on climate-related finance, taking largely positive positions on climate disclosure regulation, and more negative positions on climate standards and labels, taxonomies, and integrating climate factors into risk management.

Top-Line Messaging on Climate-Related Finance Policy: In a 2022 consultation response to the updated UK Green Finance Strategy, UK Finance supported zthe UK’s net zero by 2050 target and a role for the financial sector in meeting decarbonization targets. In a 2022 consultation response on the updated UK Green Finance Strategy, UK Finance supported government regulation on sustainable finance. Further, in 2023 article, UK Finance urged the UK Government to make progress on climate commitments in the 2023 Green Finance Strategy.

Position on Regulated Corporate Climate Disclosure In May 2024, UK Finance signed onto a joint response by PRI advocating for the adoption of the International Sustainability Standards Board (ISSB) disclosure standards, including climate transition plan disclosure, by national jurisdictions. This position was reiterated in comments to the ISSB in August 2023. In a 2022 consultation response, UK Finance supported the establishment by Her Majesty’s Treasury (HMT) of the UK Transition Plan Taskforce (TPT), the mandating of science-based transition plans, and the application of rules to both private and listed companies, a position supported in 2022 comments to the TPT.

Position on Taxonomies: In a 2024 position paper, UK Finance did not clearly support the UK Green Taxonomy, pressing for an open consultation before its implementation and suggesting that there may not be sufficient evidence to demonstrate that taxonomies mobilize low-carbon capital. This is in contrast to 2021, when it stated general support for the development of a science-based UK Green Taxonomy in a consultation response to the Treasury’s Net Zero Cost Review in 2021. In addition, in 2022 comments to the Department for Business, Energy and Industrial Strategy, UK Finance supported the broad aims of the Green Taxonomy, however ambition on what would be considered ‘green’ was unclear.

Position on Incorporating Climate Factors Into Risk Management/Prudential Regulation: iUK Finance has also commented on the Basel Committee’s (BCBS) efforts to develop climate risk management principles which are likely to inform government policy. In 2022 comments, UK Finance strongly supported incorporating climate into banks’ internal risk management and regulatory supervision. However, in a 2024 consultation, UK Finance outlined significant objections to the BCBS proposed integration of climate factors into Pillar 3 disclosures, and questioned the relevance of banks' climate strategy, emissions, and physical risk exposure to capital adequacy and physical risk.

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InfluenceMap Score for Climate Finance Policy Engagement

C-

Performance Band

57%

Organization Score

17%

Engagement Intensity

Primary Evidence

All primary evidence used to inform the analysis of UK Finance can be found in the two tabs below below. In the first tab, hyperlinks in each cell of the matrix provide access to evidence collected on UK Finance's direct policy engagement activities. The second tab provides a record of any links between UK Finance and the Industry Associations stored in the LobbyMap database.

DATA SOURCES
QUERIES
Main Web Site

Main Web Site

Corporate Media

Corporate Media

CDP Responses

CDP Responses

Direct Consultation with Governments

Direct Consultation with Governments

Media Reports

Media Reports

CEO Messaging

CEO Messaging

Financial Disclosures

Financial Disclosures

Reforming the financial sector: Does the organization support the need for systemic reforms to deliver a sustainable financial system?

NSNSNANSNSNSNS

Climate Science Stance: Does the organization support a science-based response to the climate crisis?

11NA122NS

Need for climate policy: Does the organization support the need for climate-related finance regulation?

1NSNA0NS1NS

Disclosures: Does the organization support regulated corporate climate disclosure?

12NA1NS2NS

Taxonomies: Does the organization support a taxonomy?

0NSNA-1NSNSNS

Financial Products and Ratings: Does the organization support climate standards, labels and/or benchmarks for financial products and policy on ESG ratings?

0NSNA1NSNSNS

Investor Duties: Does the organization support policy to incorporate climate factors into investor duties?

0NSNA-1NSNSNS

Prudential Regulation: Does the organization support policy to incorporate climate factors into risk management/ prudential regulation?

-1NSNA0NSNSNS

Real Economy Climate Regulations: the organization support real economy climate policy and regulation?

1NSNANSNS-1NS

Energy, Industry and Land Transitions: Does the company support energy, industry and land transitions as required by the IPCC?

1NSNA1NSNSNS

Disclosure on Lobbying: Is the organization being transparent about their positions on climate legislation and policy?

2NSNANSNSNSNS

Disclosure on Relationships: Are companies being transparent about their business associations which may impact climate debate and policy?

2NSNANSNSNSNS