John McDonnell has confirmed Labour plans to delist from the London Stock Exchange any company that “fails” to address the climate change crisis.

In a speech to City leaders and hosted by lobbying group UK Finance, the shadow chancellor said that regulation was necessary to “divert investment away from fossil fuels”.

This effort required legislation to ensure that companies could be stripped of their London listings if necessary, he added.

“This means that when we delist companies that fail to meet environmental criteria from the London Stock Exchange, investors can be confident that their money is not going on making the world uninhabitable for their children,” Mr McDonnell said.

The effort is one among a host of policies that Labour has branded its “Green Industrial Revolution”. They will help to address climate change but also “go some way in addressing - if not redressing - historical injustices” by making new green tech free or cheap for less wealthy countries, the shadow chancellor said.