Government must regulate finance sector to tackle climate crisis - ShareAction
Campaigners have warned that the next UK government needs to regulate the financial sector more effectively to address environmental and social crises facing the nation.
A manifesto by ShareAction, a group campaigning for responsible investment, has listed six key policies for financial institutions to tackle issues like climate change, inequality, and degradation of nature. This document was released on Thursday, before UK political parties present their own manifestos for the anticipated general election this year.
The report stated that the election "provides the next government an opportunity to demonstrate that the UK remains a global leader in tackling the enormous environmental and economic challenges we face". "Too often, the rules that underpin investment activities act as a barrier to innovation," said the manifesto.
It added: "UK policymakers have the chance to drive action at scale by setting a clear direction and high standards, promoting better regulation and increased transparency, and ensuring that companies and financial institutions are not acting contrary to the interests of the society in which they operate."
ShareAction also called on the incoming government to take measures such as changing the law governing pension funds to widen the definition of savers' "best interests" to include impacts on people and planet. The charity has called for the government to make new rules against "greenwashing" in retail funds stronger and apply them to big investors too.
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They also want new laws that would make companies talk about how they affect people's lives and nature, and for big companies to report on pay differences between different ethnic groups. They think there should be better rules for how companies invest responsibly.
Fergus Moffat, who works on UK policy at ShareAction, said: "The next government will be in power at a pivotal moment for people and planet, determining our country's response to the threats of climate change, nature loss and inequality."
He believes that smarter rules can help move money away from dirty energy and bad working conditions, towards cleaner energy and fair treatment of workers. He added: "To secure a sustainable future for Britain, the next government must act decisively to set the highest possible standards for companies and the financial sector and hold them to account for their impact on all of us."
Carla Denyer, Green Party co-leader, welcomed this idea. She said: "This is welcome recognition that the private sector has an important role to play in tackling the climate crisis and helping to create a fairer, greener country. It is in all our interests to encourage investment in a shared future based on equality, social and environmental justice."
Both the Department for Work and Pensions and Ed Miliband, the shadow environment secretary, have been asked by PA news agency to give their thoughts on this matter.
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