Global warming is threatening the world. Developed countries are concerned that our activities only hasten the process. They are trying to slow the warming, and to that end, the Eurozone plans to move on to a green economy model. The United Kingdom also plans to encourage eco-friendly activities.
On Thursday, Britain’s finance ministry announced that the country aims to meet its target of becoming the first net-zero-aligned financial center worldwide. Moreover, the officials proposed new measures to end “greenwashing” in financial markets. They want to distribute cash into more sustainable projects.
Furthermore, the British ministry stated that it had updated its Green Finance Strategy. The government wants to ensure that market participants get all the information and tools they need to work with authorities and share their nature and climate goals.
The European Union will also contribute to the latter. In fact, both the EU and Britain agree that moving on a green economic model is paramount. Global warming might cause unimaginable damage if left unchecked. That’s why countries are trying to lessen the effect of human activities on this process.
The British government recently released a consultation document. This text discusses Environmental, Social and Governance (ESG) aspects of companies, as well as regulating factors affecting the environment. There are also investors who want to contribute to this change. The paper reported that asset managers oversee assets that are worth approximately 10 trillion pounds. This money goes to a worthy cause.
What are the regulators planning?
Regulators stated that they need more transparency on ratings. That will help them to fight greenwashing. Inflated sustainability credentials are another concern that needs attention. The U.K. government plans to hold a public consultation later this year. It will discuss a taxonomy, as well as offer a guide for investors about sustainable investments. The authorities paused work earlier this year. They wanted to learn more about the EU’s taxonomy to plan theirs better.