The UK government has tasked the new Green Technical Advisory Group with laying out a guide clarifying what does and what does not qualify as sustainable investment, in a bid to crack down on corporate greenwashing.
The Green Technical Advisory Group will contain representatives from academia, charities and business. It will develop a “green taxonomy” to set the bar for sustainability. Hundreds of sustainable investment funds are introduced every year amid increased consumer and enterprise interest in protecting the environment, but it can be challenging to compare these funds, which often use a raft of different metrics to make and support their eco-friendly claims.
“We want investors and businesses to play their part in greening our economy and transitioning to net zero, so it’s crucial we have a clear common definition of what green means,” said John Glen, economic secretary to the Treasury. “A UK green taxonomy will provide better data on the environmental impact of firms, supporting investors, businesses and consumers to make green financial decisions and accelerating the transition to net zero.
“I look forward to receiving the advice of the expert Green Technical Advisory Group as we put in place a rigorous taxonomy that works for the UK and sets a high standard globally.”
A Treasury statement said: “The green taxonomy will help clamp down on greenwashing – unsubstantiated or exaggerated claims that an investment is environmentally friendly – and make it easier for investors and consumers to understand how a firm is impacting the environment.”
Read more here