It will also consider how existing disclosure requirements can fit into the new regime to avoid a burden of reporting, and will consider certain exemptions where companies are already reporting under international standards.

Speaking at a sustainability standards webinar organised by the Financial Reporting Council (FRC), Debbie Crawshawe, accounting expert in the business frameworks directorate at the Department for Business (BEIS) said: ‘Last October the government published the greening finance roadmap for sustainability. The sustainability disclosure regime is a whole economy regime affecting all financial providers.

'It seeks to enable the creation of a labelling system so when consumers purchase a financial product, the consumer can understand its green credentials.