Source · Select Committees · Treasury Committee
Recommendation 15
15
Accepted
Paragraph: 124
The financial services industry broadly accepts that ‘greenwashing’ is detrimental to good consumer outcomes and...
Recommendation
The financial services industry broadly accepts that ‘greenwashing’ is detrimental to good consumer outcomes and to the achievement of the net zero goal. The Treasury must work with the FCA to ensure that the regulator has the appropriate remit, powers and priorities, and uses its powers, to prevent ‘greenwashing’ of financial products available to consumers.
Government response summary AI-generated
The government announced a UK green finance taxonomy in November 2020 to provide a common definition for sustainable economic activities, reduce greenwashing, and confirmed that the Treasury is working closely with the FCA on this.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
124
Government Response
Accepted
HM Government · verbatim extract
Accepted
Clear standards for green investments are essential to maintain trust in the market and mobilise the finance necessary to achieve the net zero goal. In November 2020, the Chancellor announced a UK green finance taxonomy. This will provide firms and investors a common science-backed definition for environmentally sustainable economic activities. This will reduce greenwashing and avoid underestimating investment in the transition. The Treasury is working closely with the FCA on this.
Read the full response on Parliament ↗