Source · Select Committees · Environmental Audit Committee
Recommendation 16
16
Acknowledged
Paragraph: 102
Government intentions for Sustainability Disclosure Requirements and mandatory international standards are welcomed.
Conclusion
We welcome the Government’s intentions for Sustainability Disclosure Requirements (SDR). As part of that framework, we welcome the Government’s intention to incorporate International Sustainability Standards Board (ISSB) standards and make them mandatory, its consultation on reporting scope 3 greenhouse gas emissions, and its intention to adopt the Taskforce on Nature-related Financial Disclosures (TNFD) reporting. Having internationally-aligned standards such as the ISSB standards is vital for reducing the risks of greenwashing and carbon financing leakage.
Government Response Summary
The government reaffirms its commitment to implementing Sustainability Disclosure Requirements (SDR) and highlights its support for the Taskforce on Nature-related Financial Disclosures (TNFD), stating it will consider how best to incorporate TNFD recommendations into UK policy.
Paragraph Reference:
102
Government Response
Acknowledged
HM Government
Acknowledged
We remain committed to implementing Sustainability Disclosure Requirements (SDR) and we set out clear plans to implement the components of the SDR regime in the 2023 Green Finance Strategy. Businesses can report and act on evolving nature-related risks, opportunities, impacts, and dependencies using the Taskforce on Nature-related Financial Disclosures (TNFD) risk management disclosure recommendations and guidance, launched on 18th September 2023. The UK Government has been one of the largest donors and supporters of the global, market-led TNFD initiative. We will continue to actively support the TNFD’s work and encourage UK businesses and financial institutions to engage with the TNFD recommendations and the work of the UK TNFD National Consultation Group, which is being led by the Green Finance Institute (GFI). We will consider how best the TNFD’s recommendations should be incorporated into UK policy and legislative architecture in a manner that is coherent with global sustainability reporting.