On 24 March 2021, HM Treasury sent a letter to the Prudential Regulation Committee (PRC) discharging its duty under the Bank of England Act 1998 to make, at least once in each Parliament, recommendations to the PRC about aspects of the economic policy of the government to which the PRC should have regard to when advancing the objectives and discharging the duties of the Prudential Regulation Authority.

The letter notes, among other things, that the PRC should have regard to the government’s commitment to achieve a net-zero economy by 2050 under the Climate Change Act 2008 (2050 Target Amendment) Order 2019 when considering how to advance its objectives and discharge its functions.

On the same date HM Treasury sent a letter to the Financial Conduct Authority (FCA) discharging its duty under the Financial Services and Markets Act 2000 to make, at least once in each Parliament, recommendations to the FCA about aspects of the economic policy of the government to which the FCA should have regard when advancing its objectives and discharging its duties.

The letter also notes, among other things, that the FCA should have regard to the government’s commitment to achieve a net-zero economy by 2050 under the Climate Change Act 2008 (2050 Target Amendment) Order 2019 when considering how to advance its objectives and discharge its functions.

The letters follow the publication of the updated remits for the Bank of England’s Monetary Policy Committee and Financial Policy Committee at Budget 2021, which also reflected the importance of environmental sustainability and the transition towards a net zero economy.