- CEOs of IIGCC, UKSIF and PRI send letter to UK Prime Minister Rishi Sunak following last week’s announcement on key net zero policies.
- The letter signals deep concern with the recent proposals to ‘backtrack on vital policy measures that support the UK’s transition to net zero’.
- The letter urges the government to uphold the ‘four Cs’ that underpin effective policymaking – certainty, consistency, clarity, and continuity.
- Read the letter here.
The CEOs of IIGCC, PRI and UKSIF, organisations working with a significant number of investors and financial services institutions, have sent a letter to UK Prime Minister Rishi Sunak focused on the importance of an ‘enabling policy environment’ to create the conditions for investors to be able to make long-term investment and asset allocation decisions.
The letter – supported by 32 investors and financial institutions – argues that delaying key targets and lowering the ambition of existing government policies would be ‘misguided'.
The letter acknowledges that while the government announcement included some positive policies, like the commitments to provide greater levels of financial support under the Boiler Upgrade Scheme and plans to speed up and enhance grid connectivity, overall the delay to key targets and lowering of ambition on existing government policies risks the UK missing out on investment to other regions and nations that are taking a more consistent, long-term approach.
Stephanie Pfeifer, CEO of IIGCC: “Investor confidence is crucial to the UK being able to enjoy the economic opportunities presented by the net zero transition, including investment and the jobs that brings. By backtracking on climate commitments, or taking steps that put into question whether the UK will deliver on its legislative long-term commitment to net zero, the government’s announcement last week risks undermining this confidence.”
David Atkin, CEO of Principles for Responsible Investment: “The entire global economy - including the UK, its workers and communities - stands to benefit tremendously from a continued and accelerating transition to net zero. Analysis by the CBI from earlier this year indicated an up to £57bn boost to UK economic growth by 2030 if the government accelerates progress on net zero. To secure these benefits, the UK government must not abandon its ambition on this vitally important topic. Investors remain committed to action on net zero and clearly recognise the benefits of doing so. It is now incumbent on the UK government to mirror this ambition and to take steps to deliver the benefits of a net zero economy to the investment community and the country at large. The PRI and its partners stand ready to assist in this process.”
James Alexander, CEO of UKSIF: “With his background in financial services, the Prime Minister knows how important it is that investors get clarity and consistency from government if they are to choose to invest at scale in this country.
“The UK is already at risk of falling behind other countries, who are forging ahead with huge incentives to accelerate net-zero investment, and the PM’s speech last week may only make matters worse.
“We urge him to reconsider his recent watering down of a number of climate change commitments, including the pushing back of the electric vehicle target, so that we do not miss out on the transformative investments needed to get to net-zero by 2050.”
This letter is supported by 32 investors and financial institutions:
Border to Coast
Brunel Pension Partnership
Castlefield Investment Partners
CCLA Investment Management
Church Commissioners for England
Church of England Pensions Board
Generation Investment Management LLP
Jupiter Asset Management Limited
Local Authority Pension Fund Forum
Local Pensions Partnership Investments Ltd
London Pensions Fund Authority
McInroy & Wood Limited
Nordea Asset Management
P1 Investment Management
SAUL Trustee Company
Stafford Capital Partners
The People’s Pension
Troy Asset Management
Universities Superannuation Scheme (USS)
DISCLAIMER: This letter was developed in consultation between IIGCC, UKSIF, PRI and their members/signatories. However, the views expressed here do not necessarily represent the views of their entire memberships or signatories, either individually or collectively.