The UK Chancellor has outlined plans requiring large companies to publish details of the impact their operations have on the environment.

Chancellor Rishi Sunak said a new government report explains the climate and environmental information that investors and consumers will require from companies and which will be used to set a UK green taxonomy providing a benchmark for companies to use in their environmental reporting. Some firms will also have to outline their plans for being net zero by 2050. The rules will apply to large companies, pension funds and investment managers.

The report says that current practice is leading to greenwashing and is misleading investors and consumers.

Rishi Sunak said: “We are already a world leader in green finance, and today’s roadmap will give us the opportunity to set new global standards for sustainability that will boost the economy, protect the planet and support our net zero goals. We want sustainability to be a key component of investment decisions, and our plans will arm investors with the right information to make more environmentally-led decisions.”