United Kingdom Climate Change Opportunities for U.S. Environmental Technology Companies

To help tackle the decarbonization challenge, the United Kingdom recognizes the importance of climate related financial disclosures. From April 6th, 2022 (subject to Parliamentary approval), the UK will require the largest locally-registered companies and financial institutions to disclose climate-related financial information on a mandatory basis – in line with recommendations from the Taskforce on Climate-Related Financial Disclosures (TCFD). This will affect many of the UK’s largest traded companies, banks and insurers, as well as private companies with over 500 employees and £500 million in turnover, totaling over 1,300 organizations. 

TCFD is an international industry-led group with an objective to help investors understand their financial exposure to climate risk. It was launched in 2015 by the Financial Stability Board (FSB) and has since published a set of recommendations on climate-related financial disclosures that has been updated in 2021. 

According to a management consultancy Ernst & Young (EY), the UK has one of the highest levels of coverage by TCFD and the highest quality of reporting. With the additional pressure from the Government, UK organizations will be looking to deploy further capital not only to comply with the reporting requirements, but also to address newly highlighted climate risks and opportunities. 

Large organizations will be seeking help with issues such as reporting, smart data collection and use (AI deployment), building management software and systems, training, and advisory. U.S. companies with such solutions have a tremendous opportunity to penetrate the UK market at this pivotal moment. In addition, innovative environmental technologies that help reduce carbon, waste, water consumption, and improve climate resilience are all sought after. 

For further information please contact Kristina.Schaferova@trade.gov.