UK Finance launches COP26 and Beyond report

UK Finance today releases a new report, COP26 and Beyond, which looks at the current state of sustainable banking in the UK, the key trends and challenges, and prospects for continued progress.

The report, published during the first week of COP26, opens with UK Finance’s COP26 Policy Statement, which sets out the industry and our support of:

• The industry led and UN-convened Net-Zero Banking Alliance (NZBA) and the Glasgow Financial Alliance for Net Zero (GFANZ)
• All banking and finance firms embedding climate responsibility into their governance and strategy in support of a just and orderly transition to a net zero economy
• The setting of clear, globally-used definitions for environmental, social and governance (ESG) reporting. We support in principle the remit being given to the International Sustainability Standards Board (ISSB).

UK Finance is proud to be a NZBA Supporting Institution and is delighted to see its continued growth from 43 signatories from 23 countries at its launch in April 2021 to now having 89 signatories from 37 countries. This includes the eight largest UK lenders and a further 30 UK Finance members.

The report includes a Climate Responsibility Resource Pack, detailing relevant green finance policies, regulations, initiatives and thought leadership. It also provides an analysis of early progress being made on net zero banking.

In his keynote speech yesterday at COP26 the chancellor of the exchequer announced plans for the UK to become the world’s first net zero financial centre. This includes new requirements for UK financial institutions and listed companies to publish net zero transition plans.

The report is being launched to coincide with a session being co-hosted by UK Finance at the Green Horizon Summit in Glasgow which runs alongside COP26. UK Finance chief executive David Postings will moderate the event which will discuss what sustainable banking commitments should mean in real economy terms and the need for a just and orderly net zero transition.

David Postings, chief executive of UK Finance, said: “The banking and finance sector fully supports the government’s goal of net zero UK emissions by 2050. As the world convenes in Glasgow for COP26, our report shows that lenders understand the key role they have to play in the transition to a low-carbon and more sustainable economy. At the same time, it’s vital that the transition to net zero is fair and inclusive, bringing benefits to everyone across the UK.”