A green taxonomy will be vital to the success of measures introduced by the Government to tackle climate change. It will support pension schemes, especially smaller schemes, in assessing the merits of different investments and avoiding the risk of “greenwashing”. We recommend that as far as possible the taxonomy should align with international standards, whilst also reflecting the UK context. (Paragraph 28) 32 Pension stewardship and COP26

A green taxonomy will be vital to the success of measures introduced by the Government to tackle climate change. It will support pension schemes, especially smaller schemes, in assessing the merits of different investments and avoiding the risk of “greenwashing”. We recommend that as far as possible the taxonomy should align with international standards, whilst also reflecting the UK context. (Paragraph 28) 32 Pension stewardship and COP26 Type: recommendation | Number: 6 | Response status: under_consideration Government response: The Government is committed to developing a Green Taxonomy aligned with international standards as far as possible, whilst also reflecting the UK context. This month, the Government announced that the UK will become the first ‘Net Zero Aligned Financial Centre’21 and the development of the Green Tax