To ask Her Majesty's Government what steps they are taking to prevent British financial institutions from (1) knowingly, or (2) unknowingly, (a) investing in, or (b) facilitating, the destruction of rainforest in the Amazon basin.
13 July 2021
The UK is taking clear steps to ensure that financial decisions take the environment into account. This includes 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/opportunities these pose to their business. This builds on and streamlines existing sustainability reporting requirements such as our commitment to reporting aligned with the Task Force on Climate-related Financial Disclosures, where the UK is already a world-leader.
Further to this, Defra is supporting the scoping of a Taskforce on Nature-related Financial Disclosures (TNFD), which will develop guidance for the finance sector in relation to biodiversity and nature-related risks. TNFD will provide a framework for corporates and financial institutions to assess, manage and report on their dependencies and impacts on nature.
The Government convened the Global Resource Initiative (GRI) Taskforce in July 2019, bringing together representatives from business, finance and civil society. This Taskforce investigated what more the UK can do to reduce our footprint on the global environment by enhancing sustainability and reducing the impacts of supply chains on the world’s forests and other ecosystems. The Taskforce’s report in March 2020 included 14 recommendations addressing a range of areas, including finance. The Government has responded to the Taskforce’s initial report and has funded Phase 2 of the GRI’s work through 2021 to help take forward practical actions to reduce deforestation-linked finance in the UK.