Skip to content

Climate change reporting obligations for UK banks

Insight

Sustainability

The Climate Change Act 2008 imposes a legally binding duty on the government to reduce the UK’s carbon emissions by 100 per cent by 2050, and many banks have pledged to do the same. The financial services sector, and banks in particular, can play a key role in achieving climate change goals. Through their own climate change policy and as a source of finance, banks have significant influence over the allocation of capital both towards and away from specific industries. Governments are seeking to harness this influence to accelerate the transition to a low-carbon economy.

The government believes that climate change disclosure can support investor decisions towards more environmentally sustainable investments as the UK moves towards a low-carbon economy. As the disclosure regime develops and it becomes easier to compare companies’ exposures to climate-related risks and opportunities, investors will be better equipped to incorporate these risks into their investment and business decisions.

In the UK there are several overlapping disclosure regimes for banks, including:

  • Listing Rules.

  • PRA expectations as set out in SS3/19.

  • Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022.

This briefing will examine the obligations on UK banks as a result of these regimes and how such regimes interact with each other.

Read more

If you require further information about anything covered in this briefing, please contact Grania BairdJessica ReedKya Fear, or your usual contact at the firm on +44 (0)20 3375 7000.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, September 2022

Want to know more?

Contact us

About the authors

Grania Baird banking lawyer

Grania Baird

Partner

Grania leads the financial services regulatory and funds practice at Farrer & Co. She has over 20 years of experience acting for clients across the sector, including private banks, wealth managers, asset managers and, more recently, payment services firms and Fintech businesses.

Grania leads the financial services regulatory and funds practice at Farrer & Co. She has over 20 years of experience acting for clients across the sector, including private banks, wealth managers, asset managers and, more recently, payment services firms and Fintech businesses.

Email Grania +44 (0)20 3375 7443
Jessica Reed lawyer photo

Jessica Reed

Partner

Jessica is an experienced financial services and funds lawyer. She advises a wide range of clients including asset managers, wealth managers, private banks, international financial institutions and charitable institutions on the full spectrum of contractual, transactional and regulatory issues.

Jessica is an experienced financial services and funds lawyer. She advises a wide range of clients including asset managers, wealth managers, private banks, international financial institutions and charitable institutions on the full spectrum of contractual, transactional and regulatory issues.

Email Jessica +44 (0)20 3375 7518
Kya Fear lawyer photo

Kya Fear

Senior Associate

Kya provides advice to financial services firms, including, asset managers, wealth managers, private banks, and charitable institutions on a broad range of legal and regulatory issues.  

Kya provides advice to financial services firms, including, asset managers, wealth managers, private banks, and charitable institutions on a broad range of legal and regulatory issues.  

Email Kya +44 (0)20 3375 7509
Back to top