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Financial Services: Technology

Question for Treasury

UIN HL822, tabled on 7 June 2021

To ask Her Majesty's Government what steps they are taking to assist financial technology companies in pursuing environmentally sustainable technology.

Answered on

16 June 2021

The Government set out via a Written Statement to Parliament on 26th April the actions being taken in response to the Kalifa Review of UK Fintech.

This Statement included confirmation that the Financial Conduct Authority (FCA) will be taking forward various initiatives as part of a ‘Regulatory Scalebox, including to build on its existing Regulatory and Digital Sandboxes, which enable firms to test innovative products and services. As part of these initiatives, the FCA will soon launch the second phase of its Digital Sandbox pilot, inviting applications from industry to test proof of concepts to solve sustainability and climate change financial challenges. This in line with the Government’s wider vision for an increasingly green financial services sector.

More broadly, the UK is leading by example in both climate-related financial disclosures and environmental impact reporting. In November 2020 we became the first country in the world to announce our intention to make Taskforce on Climate-related Financial Disclosures’ (TCFD)- aligned disclosures fully mandatory across the UK economy, and urge others to follow suit. Concurrently, the Chancellor announced the creation of a UK green taxonomy to help companies and investors determine which activities are sustainable. Both policies will facilitate transition finance and prevent greenwashing.

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