Source · Select Committees · Environmental Audit Committee
Recommendation 10
10
Paragraph: 82
It is a matter of grave concern that the carbon intensity of the UK corporate...
Conclusion
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.
Paragraph Reference:
82
Government Response
Acknowledged
HM Government
Acknowledged
It is for the MPC to decide how it can support the Government’s environmental and other economic objectives while achieving its primary objective of maintaining price stability. Following the update to the MPC remit by the Chancellor at Budget, the Bank said it will provide more information about their proposed approach to adjusting the Corporate Bond Purchase Scheme in the coming months to account for the climate impact of the issuers of the bonds they hold, with a view to adapting their approach by the time of their next scheduled round of reinvestment operations in 2021 Q4.