Financial services must play a bigger role than any other sector in tackling climate change, the Treasury has announced. 

Under the government’s new green finance strategy – which was published on Tuesday – companies will be expected to reveal by 2022 how climate change could jeopardise their finances. 

City minister John Glen said the government had not ruled out “compelling” businesses to do so if they failed to meet the target. 

Meanwhile, the strategy includes plans to increase the UK’s investment in sustainable projects and infrastructure. 

A £5m fund ‘green home finance fund’ has also been established to help pilot green mortgages, which will encourage the retrofitting of homes to make them more energy efficient. 

“The UK has a long history of leading the way in tackling climate change, but we need to do more to protect our planet for future generations,” Glen said. 

The new plans will “ensure the environment is at the centre of all financial decision-making”. 

“The City has a vital role to play in securing a greener future for us all. By investing more in sustainable projects it can not only protect our environment, but also help establish London as the pre-eminent international centre for green finance.” 

The plan comes less than a month after Theresa May vowed that the UK would slash its greenhouse gas emissions to net zero by 2050 – the first G7 country to set such a target into law.

Reports suggest the move will improve public health and produce savings for the NHS by improving air quality and reducing noise pollution.