Improved sustainability policies could attract ￡100bn of investment to UK
The UK has much to gain from enhancing the sustainability of its financial sector – and much to lose if it’s unable to – says a new report from the UK Sustainable Investment and Finance Association (UKSIF).
The UK could attract up to ￡100 billion in additional assets under management (AUM) for sustainable finance, per reporting from Reuters. This potential boost hinges on adopting robust sustainability disclosure regimes, such as the International Sustainability Standards Board (ISSB) standards and a UK green taxonomy, which can harmonize standards and attract global investment.
The drive towards sustainable finance is also fueled by increasing consumer and investor demand for green products and services. As highlighted by UKSIF, the UK’s position as a leader in sustainable finance is currently under threat due to policy inertia. To avoid “driving billions of pounds of investment away from the UK,” policymakers need to work with industry leaders and financial institutions to implement a clear and stable regulatory framework.
What does this mean for businesses?
Financial services firms – especially those based and operating in the UK – should prepare stringent sustainability strategies and transition plans.
This proactive approach will not only ensure compliance with any new regulatory requirements that may come, but also position businesses to attract sustainable investments.
Whether or not policymakers act, there are still growing expectations on businesses from consumers and investors.
This news summary was excerpted from the May edition of the Normative Net-Zero Community newsletter. For more summaries of decarbonization-related news – plus invitations to community-exclusive networking events and webinars – join the community here.
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