Latest news with #sustainabilityadvocates
Forbes
15-07-2025
- Business
- Forbes
UK Green Taxonomy Dies As Sustainability Regulations Face Global Pushback
Long exposure photo from Big Ben in sunrise On July 15, HM Treasury announced that the United Kingdom will be abandoning plans to create a UK Green Taxonomy. The move shocked sustainability advocates and comes at a time when the European Union and other jurisdictions reexamine existing sustainability regulations aimed at reducing greenhouse gas emissions and shifting towards net zero. In October 2024, the UK government published a green paper setting net zero transition and green energy as a priority. The consultation on the need for a UK Green Taxonomy followed in November. The consultation stated that the UK aims to be the world leader in sustainable finance, including 'delivering a regulatory framework to support sustainable growth and enable the private sector to realise the opportunities of the transition.' The consultation defined a taxonomy as "a classification tool which provides its users with a common framework to define which economic activities support climate, environmental or wider sustainability objectives. The purpose of developing a taxonomy for sustainable activities is typically to facilitate an increase in sustainable investment, and/or to reduce greenwashing, including by providing a reference point for other policies.' The consultation closed in February. On July 15, HM Treasury released the UK Green Taxonomy Consultation Response, outlining the results and ending the drive to the creation of the regulation. The first sentence of the response demonstrated the political shift within the UK on this issue. 'Growth is the number one mission of this government and sustainable finance can be a key driver of that growth.' This is different from the language of the consultation that called sustainability 'essential for long-term economic growth.' While the change may be subtle, it is significant. HM Treasury received only 150 responses to the consultation. 45% of the respondents were in favor of a taxonomy, while 55% were opposed or mixed. 'The concern largely centred around the real-world application of this policy, primarily driven out of experience of working with other taxonomies, and concerns on the extent to which taxonomies were delivering on desired objectives.' This observation relating to other taxonomies is not only timely, as the European Commission is working on reducing the EU Taxonomy for Sustainable Activities, but is also reflective of the larger pushback on the effectiveness of sustainability regulations. As the effects and cost of these new regulations become real, business interests are resisting the proposals. Even climate activists are questioning their effectiveness, as reporting standards disclose information without requiring actual action to reduce GHG emissions. The consultation looked at two main areas of focus. The first addressed whether a taxonomy could help channel money into the net zero transition. 'The hypothesis behind many taxonomies is that it is difficult to identify credible, sustainable investment opportunities and that a UK Taxonomy could improve clarity about what activities are 'green' so that investors could confidently compare financial products and deploy capital towards sustainable goals.' The responses were split by industry, with representatives of the energy, nuclear, and waste sectors saying that the taxonomy would help reach this goal. Respondents from the 'real economy' disagreed and "viewed a UK Taxonomy as a classification tool that could serve as an additional data point among various factors considered when making investment decisions. However, it was unlikely to have a material impact on final investment decisions." The second area of focus looked at greenwashing, or misleading claims made by companies so they look more environmentally friendly. The taxonomy was aimed at reducing greenwashing "based on the hypothesis that activity level data could help to verify green and sustainability claims in the absence of a clear framework, and that a taxonomy could be the solution by definitively setting out what activities are 'green'.' However, respondents disagreed and felt that the creation of a UK Taxonomy would lead to more fragmentation and confusion. It was argued that this is best handled through existing regulators, like the Competition Markets Authority and the Advertising Standards Authority. This is the approach recently adopted in Canada. Additionally, the creation of sustainability reporting standards through the FCA Sustainability Disclosure Requirements and UK Sustainability Reporting Standards will address those claims made in financial documents. While the UK Green Taxonomy is dead, the creation of the UK SRS moves forward. The Department for Business and Trade released a draft of sustainability reporting standards for the UK on June 25. The consultation period is open until September 17, with the final requirements set to be published by December.
Yahoo
30-06-2025
- Business
- Yahoo
From Insight to Impact: LRQA connects with Energy Innovators at Energy Asia 2025
KUALA LUMPUR, Malaysia, June 30, 2025 /PRNewswire/ -- As global conversations around energy transition and decarbonisation intensify, LRQA reaffirmed its commitment to driving change and supporting businesses through this critical transformation at Energy Asia 2025 and Energy and Nature Forum, held in Kuala Lumpur. This flagship conference brought together energy leaders, policymakers, investors, and sustainability advocates to accelerate Asia's pathway towards a low-carbon future. With the theme of this year's event centred around 'Charting Pathways for a Sustainable Energy Future,' Energy Asia 2025 served as a pivotal platform to explore innovative strategies for achieving net-zero ambitions, energy security, and industrial resilience. LRQA contributed to the dialogue at a dedicated booth on the exhibition floor, where the team engaged with both existing partners and potential clients. Through in-depth discussions and knowledge sharing, LRQA showcased its deep industry and regulatory expertise across assurance, ESG, and energy sector risk management, highlighting how its integrated services can support organisations in navigating the complex journey of energy transition. Key takeaways from the event included: A heightened emphasis on data-driven strategies to accelerate decarbonisation. Increased interest in independent assurance and verification for sustainability claims. Every just energy transition journey is unique and has its own unique risks, opportunities, and challenges - across technical, social, biodiversity, carbon, collaboration, and cost. The growing importance of building resilience in energy infrastructure through robust risk management and ESG governance. Reflecting on LRQA's participation, Leanne Halliday, Global Head of Energy and Renewables at LRQA, said, "Our presence at Energy Asia 2025 allowed us to deepen strategic partnerships while learning from the experiences of global and regional energy leaders, understanding their unique challenges on their individual energy transition journeys. Events like these are crucial not just for sharing insights but for forging collaborations that lead to real-world impact. At LRQA, we're uniquely positioned to help organisations meet both regulatory and stakeholder demands with confidence, whether it's through independent assurance, advisory, or data-led decision-making." Participation in high-level forums such as Energy Asia 2025 strengthens LRQA's role as a trusted partner in the energy sector, supporting clients to anticipate risks, improve sustainability performance, and seize opportunities in a fast-changing regulatory and operating environment. About LRQA LRQA is a leading global assurance partner, bringing together decades of unrivalled expertise in assessment, advisory, inspection and cybersecurity services. Our solutions-based partnerships are supported by data-driven insights that help our clients solve their biggest business challenges. Operating in more than 150 countries with a team of more than 5,000 people, LRQA's award-winning compliance, supply chain, cybersecurity and ESG specialists help more than 61,000 clients across almost every sector to anticipate, mitigate and manage risk wherever they operate. In everything we do, we are committed to shaping a better future for our people, our clients, our communities, and our planet. For more information, visit Further information Please contact: Hasan SurveRegional Marketing Manager – Asia Pacific (APAC), +971-501097184 View original content: SOURCE LRQA Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
