UK to develop guidelines for companies to disclose sustainability risks and opportunities to combat greenwashing
The UK Department for Business and Trade (DBT) issued a statement on Wednesday stating that the UK will draw on international standards to develop rules for companies to disclose sustainability risks and opportunities. This will both combat greenwashing and strengthen London's position as a global financial center. UK Business and Trade Secretary Kemi Badenoch stated that the UK will strive to develop guidelines for UK companies to disclose sustainability-related information by July 2024. These UK sustainability disclosure guidelines will be based on the standards published by the International Sustainability Standards Board (ISSB). In addition to requiring companies to disclose the climate impact of their operations, they will also require companies to disclose Scope 3 carbon emissions. The initial plan is for the Financial Conduct Authority (FCA) to oversee listed companies, while general UK companies will be regulated by the DBT. The Bank of England, the Financial Conduct Authority, the Treasury, and the London Stock Exchange (LSE) have all announced their support for the DBT's approach and stated that they will provide recommendations for policy development. The ISSB also commended the UK for promoting this policy. Source: INDEPENDENT