Asked by: Noah Law (Labour - St Austell and Newquay)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to implement the recommendations of the Task Force on Climate-related Financial Disclosure.
Answered by Kerry McCarthy - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
In the UK, mandatory climate-related financial disclosure requirements are set under the Companies (Strategic Report, Climate-related Financial Disclosure) Regulations 2022 and the Limited Liability Partnerships (Climate-related Financial Disclosure) Regulations 2022. The requirements are aligned with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). The regulations apply to the following groups with more than 500 employees: listed companies, banks and insurance companies and Limited Liability Partnerships (LLPs), and Alternative Investment Market-listed companies. They also apply to companies and LLPs who are not included in the list above, which have more than 500 employees and more than £500m turnover.
Under UK Listing Rules, listed companies must disclose in their annual report whether their climate-related disclosures are consistent with TCFD recommendations, or explain why not.
UK pension schemes whose relevant assets are £1 billion or more at the end of the scheme year must also disclose climate-related information in line with TCFD recommendations, under the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021.
Asked by: Noah Law (Labour - St Austell and Newquay)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what steps he is taking to implement the recommendations of the Taskforce on Nature-related Financial Disclosures.
Answered by Mary Creagh - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
Internationally, Defra is one of the largest donors to and supporters of the Taskforce on Nature-related Financial Disclosures (TNFD), providing funding to enable voluntary market adoption and to address knowledge, capacity-building and data needs of market participants.
Domestically, Defra is funding the TNFD’s UK National Consultation Group – convened by the Green Finance Institute - to support UK companies and financial institutions in building awareness and capacity on nature and the TNFD, building the case internally for TNFD-aligned reporting and collecting feedback on the recommendations.
HMG has backed the International Sustainability Standards Board (ISSB) to develop standards that provide globally comparable and decision-useful information for investors regarding sustainability-related financial disclosures. Following ISSB’s consultation on future priorities, we welcomed and look forward to the results of their work to research disclosures on risks and opportunities associated with biodiversity, ecosystems and ecosystem services – drawing on the work of the TNFD. I met recently with the Director of Sustainable Finance for the Financial Conduct Authority to discuss these matters.
Asked by: Noah Law (Labour - St Austell and Newquay)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what (a) assessments and (b) controls are in place to ensure the (i) integrity and (ii) effectiveness of measures implemented to achieve biodiversity net gains in development projects.
Answered by Mary Creagh - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
Biodiversity net gain (BNG) is a mandatory requirement in the planning process, and developments (unless exempt) need to submit information to the relevant local planning authority to demonstrate how they intend to deliver a 10% ‘net gain’ calculated using the statutory BNG metric. This could be through measures taken on-site, off-site or by purchasing government issued credits as a last resort. Any significant on-site (and any off-site) gains must include a legal agreement (covering at least 30 years) and a habitat management and monitoring plan as part of their application.