As a knowledge partner for Chapter Zero in the UK, the Centre for Climate Engagement has prepared a briefing for board directors on the new government’s climate policies. The briefing explores some of the Labour Party’s key climate policy commitments according to its 2024 Manifesto and potential implications for corporate boards and net zero transition planning.
Briefing highlights
Energy policy is a central element of the new government’s agenda, with key commitments such as the establishment of a publicly owned clean energy company, tentatively named Great British Energy. This initiative aims to decrease the UK’s dependence on fossil fuels and achieve a zero-carbon electricity system by 2030. Meeting carbon budgets and targets presents a significant challenge, requiring the new government to swiftly implement effective policies. Substantial private capital investment will be necessary to fulfil the decarbonisation goals outlined in the manifesto.
Labour has pledged to develop both an Industrial Strategy and a ten-year Infrastructure Strategy, which are anticipated to provide businesses with clarity on key net zero industries and infrastructure programs. Non-executive directors (NEDs) should closely follow these policy developments to identify potential business opportunities.
The Labour Manifesto mandates UK-regulated financial institutions and FTSE 100 companies to create and implement credible transition plans aligned with the Paris Agreement’s 1.5°C target. This represents a significant advancement from the Financial Conduct Authority’s (FCA) ‘comply or explain’ approach to climate disclosure, enhancing expectations for net zero compliance and likely impacting UK businesses’ governance practices.
The change in government presents a crucial opportunity for businesses to engage with newly elected officials. Proactive policy engagement can help align the new government’s net zero transition commitments with the practical needs and priorities of the business community.
The full briefing was published by Chapter Zero, a network for non-executive directors and chairs who are integrating climate action into business strategy. Chapter Zero is the UK chapter of the Climate Governance Initiative, developed with the World Economic Forum.
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