- John McDonnell vowed Labour would “rewrite the rules” of the economy.
- The Corporate Governance Code would be amended to “set out a minimum standard for listing related to evidencing the action being taken to tackle climate change”.
Speaking at an event in London, shadow chancellor John McDonnell announced that under a Labour government, businesses failing to take steps to combat climate crisis will be de-listed from the London Stock Exchange. The exchange is the 7th largest in the world with a market capitalization equaling almost $3.8 trillion USD.
“If we are meet the climate change target to keep global warming to 1.5 degrees above pre-industrial levels, we need to ensure that companies are pulling their weight alongside government,” the Labour MP said.
McDonnell also announced the introduction of Inclusive Ownership Funds in which large companies would be required to create stock funds owned directly by the companies workers, giving them more of a say in the operations on the companies.
The funds would “be required to transfer one per cent of their shares into an employee fund until the fund owns 10 per cent of the company. Shares would be owned collectively by employees with dividend payments distributed up to a maximum of £500 per employee per year.” Similar funds have been instituted in Scandinavian countries.