- CEOs of IIGCC, UKSIF and PRI send letter to UK Prime Minister Rishi Sunak following last week’s announcement on key net zero policies.
- The letter signals deep concern with the recent proposals to ‘backtrack on vital policy measures that support the UK’s transition to net zero’.
- The letter urges the government to uphold the ‘four Cs’ that underpin effective policymaking – certainty, consistency, clarity, and continuity.
The CEOs of IIGCC, PRI and UKSIF, organisations working with a significant number of investors and financial services institutions, have sent a letter to UK Prime Minister Rishi Sunak focused on the importance of an ‘enabling policy environment’ to create the conditions for investors to be able to make long-term investment and asset allocation decisions.
The letter – supported by 32 investors and financial institutions – argues that delaying key targets and lowering the ambition of existing government policies would be ‘misguided'.
The letter acknowledges that while the government announcement included some positive policies, like the commitments to provide greater levels of financial support under the Boiler Upgrade Scheme and plans to speed up and enhance grid connectivity, overall the delay to key targets and lowering of ambition on existing government policies risks the UK missing out on investment to other regions and nations that are taking a more consistent, long-term approach.
Stephanie Pfeifer, CEO of IIGCC: “Investor confidence is crucial to the UK being able to enjoy the economic opportunities presented by the net zero transition, including investment and the jobs that brings. By backtracking on climate commitments, or taking steps that put into question whether the UK will deliver on its legislative long-term commitment to net zero, the government’s announcement last week risks undermining this confidence.”
David Atkin, CEO of Principles for Responsible Investment: “The entire global economy - including the UK, its workers and communities - stands to benefit tremendously from a continued and accelerating transition to net zero. Analysis by the CBI from earlier this year indicated an up to £57bn boost to UK economic growth by 2030 if the government accelerates progress on net zero. To secure these benefits, the UK government must not abandon its ambition on this vitally important topic. Investors remain committed to action on net zero and clearly recognise the benefits of doing so. It is now incumbent on the UK government to mirror this ambition and to take steps to deliver the benefits of a net zero economy to the investment community and the country at large. The PRI and its partners stand ready to assist in this process.”
James Alexander, CEO of UKSIF: “With his background in financial services, the Prime Minister knows how important it is that investors get clarity and consistency from government if they are to choose to invest at scale in this country.
“The UK is already at risk of falling behind other countries, who are forging ahead with huge incentives to accelerate net-zero investment, and the PM’s speech last week may only make matters worse.
“We urge him to reconsider his recent watering down of a number of climate change commitments, including the pushing back of the electric vehicle target, so that we do not miss out on the transformative investments needed to get to net-zero by 2050.”
DISCLAIMER: This letter was developed in consultation between IIGCC, UKSIF, PRI and their members/signatories. However, the views expressed here do not necessarily represent the views of their entire memberships or signatories, either individually or collectively.
Notes to editors
IIGCC brings the investment community together to work towards a net zero and climate resilient future. We create change the world needs by unlocking investor action on climate change.
Our work supports investors in generating returns for clients and beneficiaries, which in turn provides financial wellbeing for future generations. We work with our members to address climate risk and ensure they are well positioned to make the most of investment opportunities offered by climate mitigation and adaptation efforts, ensuring that their investments contribute towards a better world for us all to live in.
Our team supports investors to create practical solutions that can make a real difference in tackling climate change – providing guidance and support on investment practices, policies and corporate behaviours that have real impact and deliver change that the world needs. For more information visit www.iigcc.org and @iigccnews
The Principles for Responsible Investment (PRI) is the world’s leading proponent of responsible investment. Supported by the United Nations, it works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole. Launched in New York in 2006, the PRI has grown to more than 5,000 signatories, managing over US$121 trillion. For more information visit www.unpri.org.
The UK Sustainable Investment and Finance Association (UKSIF) exists to bring together the UK’s sustainable finance and investment community and support our members to expand, enhance and promote this key sector. Our work drives growth and new opportunities for our members as global leaders in the sustainable finance industry.
UKSIF represents a diverse range of financial services firms committed to these aims, including investment managers, pension funds, banks, financial advisers, research providers and NGOs, with its 300+ members managing over £19trn in global assets under management (AUM).
This letter is supported by 32 investors and financial institutions:
Border to Coast
Brunel Pension Partnership
Castlefield Investment Partners
CCLA Investment Management
Church Commissioners for England
Church of England Pensions Board
Generation Investment Management LLP
Jupiter Asset Management Limited
Local Authority Pension Fund Forum
Local Pensions Partnership Investments Ltd
London Pensions Fund Authority
McInroy & Wood Limited
Northern Ireland Local Government Officers’ Superannuation Committee
Nordea Asset Management
P1 Investment Management
SAUL Trustee Company
Stafford Capital Partners
The People’s Pension
Troy Asset Management
Universities Superannuation Scheme (USS)