Recommendation 10

It is a matter of grave concern that the carbon intensity of the UK corporate sector remains aligned with global temperature rises that would be catastrophic. We welcome the news that the Bank of England is exploring how it can adjust its Corporate Bond Purchase Scheme with regard to the Government’s climate objectives. Before the Pre-COP summit in September 2021, the Bank must set out the steps it intends to take to reduce the average carbon intensity of its corporate bond portfolio to align with the temperature goals of the Paris Agreement. This is necessary to avoid undermining UK diplomatic leadership on climate change and to demonstrate the seriousness of the UK’s commitment to fulfil its Nationally Determined Contribution.