Environment Protection: Finance
The question
To ask the Chancellor of the Exchequer, pursuant to the Answer of 4 March 202, to Question 33375 on Environment Protection: Finance, whether (a) UK Paris-aligned Benchmarks and (b) UK Climate Transition Benchmarks require investment in firms which support the renewal of Trident nuclear deterrent to be excluded.
Answered by Emma Reynolds
The UK Benchmarks Regulation sets out the requirements for UK Climate Transition Benchmarks and UK Paris-aligned Benchmarks. The Financial Conduct Authority (FCA) monitor and supervise benchmark administrators according to the Benchmarks Regulation to ensure that benchmarks are produced robustly and with due transparency. The FCA published a statement regarding their position on sustainability regulations and UK defence investment on 11 March 2025.
It is for benchmark administrators to decide if they wish to provide UK Climate Transition Benchmarks and UK Paris-aligned benchmarks under the Benchmarks Regulation, including by paying due regard to the relevant FCA guidance, and which companies to include in their benchmarks. It is then up to firms and investors to choose whether to use these benchmarks.
This Government does not see a conflict between sustainable investment and investment in our world-leading defence sector.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →