"Today I am announcing the UK will go further and become the first-ever net-zero aligned financial centre", Sunak told delegates at the UN Conference on Climate Change (COP26) in Glasgow, Scotland.
In a speech opening Day 4 of the event, the UK chancellor explained that the government will move towards making it mandatory for firms to publish a clear, deliverable plan setting out how they will decarbonise and transition to net zero with an independent task force to define what's require.
Sunak also pledged $100 billion a year in carbon funding, adding that over $130 trillion in private capital will now be aligned with the climate goals set out in the 2015 Paris Agreement.
"Six years ago, Paris set the ambitions, today in Glasgow we're providing the investments we need to deliver that ambition", the Chancellor said.
According to Sunak, those funds will make "tangible differences" in people's lives across the world as they will be used to produce clean, cheap electricity to power schools and hospitals in rural Africa or build better coastal defences to protect people from storm surges.