Rainforests: Brazil

(asked on 18th August 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of UK investor concerns on conditions for investing in or providing financial services to Brazil as a result of the increasing deforestation in the Amazon.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 6th September 2021

The Government acknowledges reports of continued high rates of deforestation in the Amazon and understands that this may create concerns for UK investors. Many UK financial services firms are increasingly cognizant of the environmental impact of their activities, and the demand for investment products that avoid environmentally damaging activities such as deforestation is growing. The Government is committed to ensuring that UK investors have the tools, frameworks, and information necessary to make informed decisions about the sustainability of their investments.

In his July 2021 Mansion House speech, the Chancellor announced plans to introduce economy-wide Sustainability Disclosure Requirements for businesses and investment products to report on their impact on climate and the environment – and the risks and opportunities these pose to their business. This builds on and streamlines existing sustainability reporting requirements such as our commitment to fully mandatory economy-wide TCFD reporting, where the UK is already a world-leader. It will also include disclosures made under the UK green taxonomy, which will provide firms and investors a common definition for environmentally sustainable economic activities.

Furthermore, the Government will also work with the Financial Conduct Authority to create a new sustainable investment label so that consumers can clearly compare the environmental impacts of their investments for the first time.

More broadly, the UK is working to promote increased sustainability through the global financial system ahead of COP26 and beyond. For instance, the Government is encouraging global financial firms, including in Brazil, to commit to net zero through membership of the Glasgow Financial Alliance for Net Zero (GFANZ).

Lastly, the UK continues to encourage other governments to raise capital specifically to finance projects that tackle climate change and other environmental challenges. For instance, Mexico and Chile have issued several green and sustainable on the London Stock Exchange in recent years.
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