UK Finance

InfluenceMap Score
D+
Performance Band
53%
Organisation Score
Sector:
Financials
Head​quarters:
London, United Kingdom
Official Web Site:
Wikipedia:

UK Finance has communicated high-level support for sustainable finance policy, supporting some areas of UK regulation in this area. However, it has pushed back on some of the ambition proposed for policies affecting the financial sector, such as climate-related disclosures in the UK and the Sustainable Finance Disclosures Regulation (SFDR) in the EU. UK Finance has stated support for the role of the finance industry in meeting the goals of the Paris Agreement, and in 2020, both UK Finance’s Stephen Jones (Chief Executive) and Bob Wigley (Chair) advocated for action to achieve net-zero by 2050.

While UK Finance has not clearly recognized the need for systemic reform to achieve a sustainable financial system, it has been supportive of the UK’s Green Finance Strategy. However, in responses to consultations on detailed policy strands, UK Finance has often presented support with some exceptions.

During 2019-2021, UK Finance has had a mixed position on corporate ESG disclosures in both EU and UK consultations, as well as relevant standard setting bodies. In response to the Treasury in 2019, the organization supported a mandatory implementation of the TCFD. In 2020-2021, it did support UK Department for Business, Energy & Industrial Strategy’s proposal on mandatory climate-related financial disclosure for large companies and UK Financial Conduct Authority’s proposal for listed companies. However, it did not support major aspects of FCA’s proposal for climate-related disclosures by asset managers, insurers and pension providers and had a mixed position on disclosures by standard listed companies.

At the EU-level, UK Finance was supportive of the review of the Non-Financial Reporting Directive (NFRD) although argued against minor aspects of the proposed policy. UK Finance was also very supportive of the International Financial Reporting Standards’ ambitions for setting a global sustainability standard, however, in comments to the TCFD consultation in 2021, it pushed back on the idea of implementing forward-looking climate-related financial metrics.

In response to the Treasury Committee in 2019 on UK’s economy and green finance strategy, UK Finance appeared to support policy on ESG benchmarks, and labels and standards. However, at EU-level, in comments to the ESAs’ consultation on the Sustainable Finance Disclosures Regulation (SFDR) in 2020, UK Finance argued against the proposed mandatory adverse impact indicators and suggested a delayed implementation.

In response to a 2020 European Banking Authority's Survey, UK Finance did not appear to support the expansion of the EU Taxonomy to cover harmful environmental activities. However, it did state support for the UK Taxonomy in response to the UK Treasury in 2019.

UK Finance argued in comments to the Bank of England’s in 2020 that the climate risk stress tests should be delayed and that some of the required information was unrealistic.

UK Finance has made a clear disclosure of sustainable finance policy consultation responses on its website, and is fully transparent about its membership and board.

Details of Organization Score

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