Written Evidence Treasury Select Committee Inquiry into Decarbonisation of the UK Economy and Green Finance

ClientEarth argues that HM Treasury (HMT) is an obstacle to ambitious climate policy and lacks transparency in its coordination with other departments. The submission calls for a 'Climate Cabinet' and a parallel climate budget to ensure legal targets are met. In the financial sector, ClientEarth highlights a widespread failure among pension funds and asset managers to treat climate change as a material financial risk, noting a 'herd mentality' that stifles innovation. It criticises the Financial Conduct Authority (FCA) for a lack of enforcement regarding climate risk disclosures and warns of 'greenwash' in sustainable financial products. The document recommends mandatory TCFD reporting for large asset owners by 2022 and the regulation of investment consultants by the FCA.

• HM Treasury's (HMT) current approach to decarbonisation is deemed unfit for purpose, with the department perceived as an obstacle to ambitious policy. Evidence cited includes HMT's attempts to "water down the UK’s 4th carbon budget (2023-2027)" and efforts to deter the adoption of a net zero target by citing "£1 trillion costs" of the transition.
• There is a significant lack of transparency and coordination between HMT and other government departments regarding the Clean Growth Strategy and carbon budgets. ClientEarth supports the Committee on Climate Change's (CCC) recommendation to establish a "Climate Cabinet" to ensure "strong leadership and coordination at the centre."
• UK financial institutions, particularly pension funds, are failing to treat climate change as a material financial risk. A 2018 Pinsent Masons study found only 5% of the UK's largest pension funds had a climate change policy, and ClientEarth's own survey found 80% of Local Government Pension Schemes (LGPS) did not mention climate risk in their Investment Strategy Statements.

APA

ClientEarth (2019). Written Evidence Treasury Select Committee Inquiry into Decarbonisation of the UK Economy and Green Finance. https://www.clientearth.org/media/2bdlm1mm/treasury-select-committee-inquiry-into-decarbonisation-of-the-uk-economy-and-green-finance-clientearth-response-ce-en.pdf

Chicago

ClientEarth. Written Evidence Treasury Select Committee Inquiry into Decarbonisation of the UK Economy and Green Finance. 2019. https://www.clientearth.org/media/2bdlm1mm/treasury-select-committee-inquiry-into-decarbonisation-of-the-uk-economy-and-green-finance-clientearth-response-ce-en.pdf.

Wikipedia

{{cite press release |author=ClientEarth |title=Written Evidence Treasury Select Committee Inquiry into Decarbonisation of the UK Economy and Green Finance |date=26 July 2019 |url=https://www.clientearth.org/media/2bdlm1mm/treasury-select-committee-inquiry-into-decarbonisation-of-the-uk-economy-and-green-finance-clientearth-response-ce-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearth2019written, author = {{ClientEarth}}, title = {{Written Evidence Treasury Select Committee Inquiry into Decarbonisation of the UK Economy and Green Finance}}, publisher = {ClientEarth}, year = {2019}, month = jul, url = {https://www.clientearth.org/media/2bdlm1mm/treasury-select-committee-inquiry-into-decarbonisation-of-the-uk-economy-and-green-finance-clientearth-response-ce-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }