05 Nov The UK announces sustainable investment measures for a greener future
Green and sustainable finance continues to rise. The 17 UN Sustainable Development Goals (SDGs) generated a clear set of policy measures for governments to follow and finance is a critical industry in working towards delivering these goals.
There have been several regulatory responses worldwide requiring further action and responsibility from organisations. We have also witnessed increased consideration concerning the impacts of their operations in terms of sustainability, environmental, social and corporate governance, as well as investment and finance. More now than ever, industry experts are recognising how vital the role of financial markets is in ensuring sustainability and the delivery of positive ESG outcomes.
How organisations within the financial sector are expected to operate to support the SDGs is yet to be revealed. Businesses have struggled with standard issues, including a lack of transparency and information on existing plans and general guidance in terms of implementing sustainability and ESG factors into the decision making process in finance.
Representing the UK as the National Standard and Body, the BSI is well-positioned to generate clear, robust and globally applicable standards for sustainable finance. These measures, created in collaboration with an extensive number of stakeholders and developed through continued efforts and initiatives, enable financial businesses to understand and work towards the SDGs.
In partnership with the UK government, the British Standards Institution (BSI) has released a new specification report aimed at standardising responsible and sustainable investment management in the UK.
The measures intended to address all policies and processes required to deliver and embed a responsible approach towards investment management. The report aims to transform the financial system towards a cleaner and greener future. The release coincides with the country preparing to take the presidency of the G7 and host the UN Climate Change Conference (COP26).
The plans, which include detailed information on the requirements to embed sustainability within the investment system were created in partnership with the UK Department for Business, Energy and Industrial Strategy, along with the financial services industry. The plans intend to support the wider national green finance industry. Kwasi Kwarteng, the minister of state for business, energy and clean growth explained that by transforming the financial system towards a greener future is a necessary step to deliver a more stable and resilient recovery from the pandemic and to work effectively towards the legally binding net-zero targets set for 2050.