Despite the Treasury reaffirming its commitment to give the FCA powers to regulate environmental, social and governance (ESG) rating providers, “the most pressing sustainability comment was missing in today’s speech” said CCLA head of sustainability James Corah.
Besides the ESG ratings provider statement, no sustainable investing announcement was made by Jeremy Hunt during the Spring Budget today (6 March).
Corah added: “Unlike several other major industrial nations, the UK continues to fail to set out a comprehensive vision as to how it is going benefit from the revolutionary shift to a low, and then net-zero, emissions economy.
“Until the end goals – or at least our aspirations – are set, every budget is going to look short term, reactionary and – in essence – disappointing when compared to the challenges and opportunities that face us.”
The finance ministry said the ESG ratings providers announcement however, will be regulated where assessments of ESG factors are used for investment decisions and influence capital allocation.
This, it insisted, will “improve clarity and trust” in these ratings.
