Ministers made a last minute decision to withdraw plans to force UK asset managers and companies to disclose their environmental impact from the Queen's Speech, according to a report in the Financial Times.
The Sustainability Disclosure Requirements were going to be included in the Financial Service and Markets Bill that was announced on Tuesday (10 May). However, one aide told the FT there had been a last-minute U-turn.
"I would see this in the context of Downing Street not wanting to impose new regulations on business at this stage," an aide said to the paper.
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SDR requirements, which will affect asset managers, investment products and listed corporates, require firms to disclose the environmental impact of any activities they finance and justify sustainability claims they make.
The Treasury told the FT that it "remained committed to implementing sustainability disclosure requirement and will proceed with the necessary legislation in due course".
Officials highlighted progress that was still taking place, including the Financial Conduct Authority, which published a consultation on SDR and investment labels in November last year, which closed on 7 January.
They also highlighted the Transition Plan Taskforce launched a consultation on 11 May to seek feedback on the key principles and elements of a transition plan.
