Research by the UK Sustainable Investment and Finance Association (UKSIF) has found more favourable policies could help shift up to £100 billion (US$126.6 billion) in AUM towards sustainable finance in the UK. UKSIF surveyed 100 financial services organisations representing more than £200 billion in green investments in the UK. The organisations flagged a lack of government clarity and policy to create a clear direction of travel, with 65% saying they already have or plan to move investments out of the UK to a market more supportive of their sustainability goals. UKSIF called for supportive policies and regulation in three key areas: delivering a clear sustainability disclosure regime, empowering investors by clarifying the fiduciary duty of pension schemes, and embedding biodiversity into the regulatory framework. UKSIF argued this would create a more attractive environment for the growth of sustainable finance and private investment at large. “The UK is facing a crucial inflection point that could see it either close the remaining gaps and benefit from the great strides we have taken in our global leadership on sustainable finance to date, or lose its hard-won position as a leader,” said James Alexander, CEO at UKSIF. “The recent flipflopping on wider sustainability policies and continued absence of detailed policy frameworks for various sectors, alongside secondary factors such as a lack of clarity from policymakers, is helping drive away much-needed private capital into the UK that can help progress the country towards net zero.”
