Reason for engagement
Predictable and credible policy frameworks are essential for long-term investment decisions. Taking part in the Institutional Investors Group on Climate Change (IIGCC) UK Policy Working Group helps investors to ensure their perspectives are reflected in policy development and provides a way to contribute to discussions that affect transition planning, sector alignment and future capital allocation. Participation also strengthens the collective investor voice on climate and industrial policy.
What we did
The IIGCC, of which CCLA is a member, brings together European investors to advance climate policy and support practical action on the energy transition. Its UK Policy Working Group provides a regular forum where members can assess emerging proposals, discuss implications for investment and shape collective responses to consultations. The group focuses on areas that directly influence transition planning, disclosure and sector pathways.
During 2025, we participated in the group’s discussions, and reviewed and provided feedback on draft consultation responses prepared by the IIGCC. These covered a wide range of topics, including a proposed UK green taxonomy, principles for developing sector decarbonisation roadmaps, written evidence to the Treasury Select Committee’s inquiry on the National Wealth Fund (NWF), analysis of European Commission papers on the steel and metals sector transition, and the response to the International Sustainability Standards Board (ISSB) consultation on amendments to the SASB Standards. We also supported the IIGCC’s consultation responses on UK transition plan requirements (led by the Department for Energy Security and Net Zero) and the development of the UK Sustainability Reporting Standards (led by the Department of Business and Trade).
Outcomes
Participation in the UK Policy Working Group keeps us well informed about policy developments and areas where coordinated investor engagement can be most constructive. Through the group, we contributed to the IIGCC’s position statements on UK and EU climate and industrial policy and helped to ensure the statements reflected investor priorities. The working group continues to provide an ongoing route to engage in policy development and to support a joined-up investor perspective on issues central to the energy transition.
Since our engagement, both the Treasury Select Committee’s report on the NWF and the UK Sustainability Reporting Standards exposure drafts have been published. HM Treasury has also confirmed that it will not proceed with a UK green taxonomy at this stage. This outcome reflects themes raised in the IIGCC’s response, including the need to prioritise real-economy policy and the resource demands of maintaining a taxonomy.
Taken together, these outputs address issues highlighted through the IIGCC’s policy work, such as the importance of catalytic investment through the NWF and the role of ISSB standards in UK sustainability reporting.