The Chief Executive Officers (CEOs) of three prominent investor-focused institutional organisations recently posted an open letter to the British Government to express a strong opposition to the potential inclusion of activities involving natural gas in the United Kingdom’s ‘green taxonomy’.
The organisations included the UK Sustainable Investment and Finance Association (UKSIF), Principles for Responsible Investment (PRI) and the Institutional Investors Group on Climate Change (IIGCC).
The open letter was written in response to reports made recently in the media that the government is now actively considering this move. United, IIGGC, UKSIF and PRI believe that such an action would effectively undermine the current credibility of the UK taxonomy for investors, while causing significant damage to the UK’s present leadership position for sustainable finance for many years to come.
The CEOs also argue that the short-term considerations regarding energy security must not be combined with the taxonomy. They believe that any inclusion of natural gas activities risks sending investors misleading signals when they need greater clarity.
In a statement, the CEO for IIGCC, Stephanie Pfeifer, said:
“The fundamental objection to natural gas being included in the taxonomy is that it is not green. The taxonomy is meant to be a science-based tool to define ‘green activities’ and thereby provide clarity to investors over which of their investments can be considered green.”
British consumers seeking green investment advice in Chester, London and other major cities sometimes consult wealth management companies. Specialists in portfolio management, they can compile potential assets that meet any ethical criteria, like ESG (environmental, social and governance) investments that match their clients.