Companies receiving BoE support must align to Paris

The Environmental Audit Committee (EAC) has written to Governor of the Bank of England urging the Bank to show continued leadership on climate change.

Following the EAC’s evidence gathering as part of its Greening the post-COVID recovery inquiry, the Committee has pressed Governor Andrew Bailey to ensure that the Bank’s corporate bond purchasing programme is aligned with the goals of the Paris Agreement.

Significantly, the Committee called the Bank to require large companies receiving taxpayer support via its COVID Corporate Financing Facility (CCFF) to publish climate-related financial disclosures, and these disclosures should be in line with the recommendations of the international Taskforce on Climate-related Disclosures (TCFD) and the UK Government’s own Green Finance Strategy.

EAC chairman, Philip Dunne, said: “We are calling on the Bank to show leadership, once again on climate change, in the year the UK hosts COP26, by ensuring its actions to promote recovery also reduce the UK’s exposure to climate change risk. It has a moral responsibility to align its corporate bond purchasing programme with the goals of Paris Agreement; and it should require companies receiving millions of pounds of taxpayers’ money to publish climate-related financial disclosures."

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