Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps he is taking to ensure that the Prudential Regulation Authority, the Bank of England and the Financial Conduct Authority are adequately ensuring that companies disclose the financial risk to their company associated with climate change.

Climate change is not only a huge threat to our natural environment, but to our economic prosperity too. The private sector’s involvement is crucial if we are to be successful in reaching the ambitious targets agreed in Paris last year. The UK government and regulators are together at the forefront of engaging with the private sector to address this pressing issue:

• The Prudential Regulation Authority’s pioneering report on the impact of climate change on the UK insurance sector last year kick-started the global debate around climate-related financial risks.

• The Bank of England is leading global efforts to develop the international framework for green finance as co-chair of the G20 Green Finance Study Group.

• Governor Carney’s speech in Berlin last week stressed the importance of disclosure in addressing climate-related financial risks.

The Financial Stability Board, chaired by Governor Carney, set up an industry-led Task Force on Climate-related Financial Disclosures in late 2015, under the leadership of Michael Bloomberg. The Task Force is developing recommendations for voluntary, consistent, comparable, reliable and clear disclosures around climate-related financial risks for companies to provide information to investors, lenders, insurers, and other stakeholders. The Task Force published its initial report in April, and will publish a final report in early 2017. The Government looks forward to the publication of the Task Force’s report.