Financial institutions (FIs) responsible for managing £1.5 trillion (US$1.89 trillion) in AUM have cautioned that the recent shift in UK government rhetoric could impede investments vital for achieving net zero and economic growth. They emphasised the necessity for enduring clarity from the government to facilitate the annual investment requirement of £50-60 billion to reach its net zero target. A letter addressed to Prime Minister Rishi Sunak was endorsed by 36 FIs affiliated with the UK Sustainable Investment and Finance Association, including Jupiter Asset Management, Scottish Widows, Aegon, and Royal London. James Alexander, CEO of the UK Sustainable Investment and Finance Association, said: “When the Government looks committed on climate change, investors follow and can channel private capital into new technologies and projects that will decarbonise the country.” The FIs’ appeal to the government underscored the significance of long-term policy certainty, with signatories asserting the UK could maintain its standing as a sustainable finance leader by ensuring stable frameworks underpinning investments, such as consistent carbon pricing mechanisms, the transition to electric vehicles (EVs), and enhanced energy efficiency standards for housing. “We call on the UK government to uphold its net zero ambition and take meaningful action over the coming years to demonstrate its commitment. Long-term and consistent policy will help drive real investment into the UK economy,” said Otto Thoresen, Chair of the BT Pension Scheme. “Holding sustainability considerations at the core of this will lead to a more prosperous economy, increased growth and job creation which in turn will help secure our members’ pensions.”
A group of 36 UKSIF members have signed a letter to the PM calling for greater consistency in the government’s messaging about the net zero economy.
You can read the letter in full on our website https://t.co/gxWiFChnF7 pic.twitter.com/SQvpCHMS4w
— UKSIF (@UKSIF) August 28, 2023
