The new UK Centre for Greening Finance and Investment will launch in April, aiming to provide world-class data and analytics to financial institutions and services such as banks, lenders, investors and insurers around the world.
Researchers at Oxford University, Imperial College London and the University of Leeds, where there will be a second hub, are backing the centre, which has a £10 million grant from the Government.
Among projects will be to equip banks with the latest environmental and scientific intelligence to help companies of all sizes gear up for the risks posed by climate change.
New world-leading products and services are envisaged, including cutting-edge technologies to measure severe storms and flood risks for property investors and tools that can improve data on industrial pollution linked to investment portfolios.
Ministers hope the green hub will be a magnet for finance talent from around the world to the UK’s major cities.
Anne-Marie Trevelyan, the minister for Energy and Clean Growth said: “The City of London has long been an international top spot for financial and professional services and with its competitive strengths, the UK’s capital has the potential to make serious waves around the world – including tackling climate change.
“As the home to almost all Fintech 100 firms and the world’s ‘greenest’ stock exchange, London could not be better placed to seize the exciting opportunities that will arise from the new UK Centre for Greening Finance and Investment.
“With a research hub in London, this centre will ensure our climate and the planet’s health are at the heart of financial decision-making.”
The Bank of England’s executive sponsor for work on climate change Sarah Breedan said: “Integrating climate and environmental data and analytics into decision making will allow financial institutions to identify, measure and manage the financial risks and opportunities from climate change, and so support the Bank’s objective to ensure the financial system is resilient to these risks and supportive of the transition to net zero.”
Professor Sir Duncan Wingham, executive chair of the Natural Environment Research Council, welcomed the centre. He said: “Good data and analytics – based on the best science – is fundamental to understanding and managing climate and environmental risk exposure in support of the transition to a more sustainable global finance system.”
Lord Mayor of the City of London William Russell post-pandemic growth had to be more sustainable. “The demand across the sector for deep expertise in the green finance space – such as that which will be provided by the CGFI – demonstrates that the UK is well-placed to take advantage of this opportunity.”