Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of making the Sustainability Disclosure Requirements, announced in the Green Finance Roadmap, mandatory; and if he will make a statement.

In October 2021, the Government published ‘Greening Finance: A Roadmap to Sustainable Investing’, setting out details of new, economy-wide Sustainability Disclosure Requirements (SDR). The ambition is for the new SDR to apply to companies, asset managers and asset owners, including pension schemes, and investment products. It will require reporting for the first time on climate and environmental impact, alongside the financial risks and opportunities these pose to business. This builds on our world-leading efforts in making TCFD-related disclosures mandatory in the UK.

As set out in that Roadmap, these disclosures must be mandatory to ensure that relevant firms are disclosing high-quality information, enabling investors to compare disclosures and ensuring that data is available across the economy. The Roadmap published in October outlines a pathway to introducing requirements across the economy in a coordinated and proportionate way.