A group of financial firms are calling on the government to make net zero a key target.
This is to prevent the economy from tanking due to climate change – with firms such as Hargreaves Lansdowne and Aviva Investors involved in the call.
The companies wrote to Britain’s MPs, “leaning into the [net zero] transition without delay also helps address the significant economic and financial damage and risks to market stability, posed by climate change and nature loss.”
The submission follows the anticipation for the passing of the Financial Services and Markets Bill, which will not only see regulators given greater power in investment but also see a necessity for some form of contribution towards net zero.
However, the financial businesses are calling for this element to be strengthened; becoming a full statutory objective, rather than an encouraged one.
On this, they wrote, “a statutory objective would empower regulators to pioneer the leading-edge regulations needed to press the private sector to support the net zero transition.”
The firms are under the impression that investing in renewables would see the economy grow, as it adapts to markets needs and desires for the coming decades.
Regulatory bodies are considered critical in ensuring net zero is not overlooked by the financial sector.
“The regulators could tackle the rising prevalence of greenwashing, review and/or ensure the credibility of transition plans, provide guidance on adaptation finance, take steps to avoid substantial disruption to businesses and financial losses through ecosystem destruction – and go further in tackling the build-up of systemic market stability risks,” the companies concluded.