Rishi Sunak’s watered down green policy: Companies must not draw the wrong lessons

Following Prime Minister Rishi Sunak’s speech on easing green policy measures (20 September 2023), Mark Lumsdon-Taylor, ESG Partner says government backsliding could be seen as a green light for companies to water down their own climate commitments: 

“The UK has a good standing on the international stage on climate change, yet yesterday’s speech brings this into question. With COP28 just around the corner, the UK must remain committed to its net-zero goals, especially as the climate emergency grows.”

"Yesterday's announcements do rightly recognise that the climate transition is costly. It’s crucial to understand transition won't happen if people are not fully supported. However, Rishi Sunak’s change of policy goes against the government's commitment under the Climate Change Act enacted in 2019

“The law requires the government to set legally binding carbon budgets and to reduce greenhouse gas emissions by 2050. It is crucial the government continues to champion the net-zero transition goal by supporting low-income households through a meaningful plan

"Any weakening of emission reducing pledges by the government, including the Climate Change Act, could create a legal situation where companies could 'green light' their lack of commitment towards reducing emissions. To prevent this, the government must continue to incentivise companies to remain committed towards the green agenda by encouraging them to invest in green strategies as a means to create purposeful profit rather than a greenwashing tick box exercise

“Yesterday’s announcement also brings into question the effective adoption of the Task Force on Climate-related Financial Disclosures (TCFD) reporting, which requires large companies to report their climate-related financial information. While some large companies have already adopted the framework, others haven’t, and the government must encourage them despite the easing of green measures.”