Source · Select Committees · Environmental Audit Committee
Recommendation 28
28
Accepted
Paragraph: 93
Data availability challenges financial institutions' deforestation risk assessment, mandating due diligence.
Conclusion
Information and data availability is one of the greatest challenges for financial institutions with regards to allowing them to assess and reduce their deforestation risk. We therefore welcome the Government’s championing of the work of the Taskforce on Nature-related Financial Disclosures. We observe that making nature-related disclosures mandatory would not obviate the need for mandatory due diligence for the finance sector under Schedule 17 to the Environment Act.
Government Response Summary
The government commits to publishing guidance on the application of the Schedule 17 due diligence regime to the financial sector and to conducting a review of financial regulation concerning the financing of illegal deforestation.
Paragraph Reference:
93
Government Response
Accepted
HM Government
Accepted
Guidance on the application of the Schedule 17 regime to businesses in the UK financial sector will be published when secondary legislation is laid in Parliament. Furthermore, as set out in the Financial Services and Markets Act 2023, HM Treasury will conduct a review to assess the extent to which regulation of the UK financial system is adequate for the purpose of eliminating the financing of illegal deforestation, and to consider what, if any, changes to the regulatory framework may be appropriate.