UK toughens ESG rules for London listed companies
Businesses will be required to post regular updates on how they plan to become more environmentally friendly
The UK is expected to announce new rules for companies listed in London, which will be required to post regular updates on how they plan to become more environmentally friendly.
If companies don’t share their “transition plans,” they could face fines or even deregistration, The Telegraph reported.
The Financial Conduct Authority (FCA) will be responsible for supervising the publications and possibly imposing sanctions.
The initiative could be applied as early as 2023.
Finance day @ COP26 will see @RishiSunak established plans for the world’s largest international financial center @City of London become the world’s first net zero aligned financial center, backed by industry leading regulation and economy wide net zero transition plans.
– Ben Caldecott (@bencaldecott) November 2, 2021
Chancellor Rishi Sunak is due to announce the new measure on Wednesday as part of the government’s efforts to reach net zero by 2050.
Speaking at COP26, he pledged to ‘rewire’ the global financial system to a net zero, Reuters reported, and the UK will provide £ 100million to help developing countries finance the climate.