ESG Reporting Standards in the UK are changing rapidly. How and why should your company keep up?
The UK has begun gaining momentum towards a refinement of their ESG reporting regulations. The UK reporting landscape is diverse yet interconnected, constantly growing and changing. Because of this, there is no comprehensive, overarching reporting framework. Company size, industry, and scope being varying factors, ESG regulation compliance has proven to be a challenge to standardize.
Despite this, official sources have implemented a mix of mandatory ESG reporting regulations for companies to comply with. These are applicable on a basis of company elements, such employee count. These include, but are not limited to, gender pay gap reporting disclosures, The Company’s Act, Disclosure Guidance and Transparency Rules (DTRs), and UK Corporate Governance Code.
The existing requirements, however, are not comprehensive. To fill the gaps and ensure ESG compliance, many companies have chosen to adopt voluntary reporting frameworks. Key frameworks include SASB, TCFD, GRI, CDP, PRI, and IIRC. Each has a different focal area, and are implemented in accordance with companies’ factors and needs.
In order to provide a standard, core set of ESG measurements and suggested disclosures for all companies to report on, across industries and regions, the WEF has developed a set of ESG measures that attempt to improve upon current standards and frameworks through the International Business Committee. Companies should report on these measures in their mainstream disclosures to provide a more true portrayal of a company’s performance, risk management capabilities, and capacity to create long-term value for all stakeholders,
Further benefits of ESG reporting
Compliance is not the only advantage for firms that are required to comply with ESG reporting regulations. Company transparency has numberable other benefits. First and foremost is developing a corporate image.
Today’s stakeholders look to firms to demonstrate a strong commitment to ESG issues. Long term strategies should be outlined. Another reason is reducing costs and increasing savings. ESG reporting makes it easier to track and measure important indicators like raw material and energy use. This enables businesses to achieve exceptional operational efficiencies. Lastly, we have developing a competitive advantage. Early ESG monitoring and reporting implementations have produced outstanding results for businesses. They have also given time for an organization’s ESG approach to mature, turn into a strategic endeavor, and ultimately result in a competitive advantage.
How can we help?
The ESG reporting landscape can be difficult to navigate. Here at CSE, we help companies maintain an edge in reaching global sustainability goals and understanding evolving international laws. During the upcoming C-suite ESG training, attendees will learn how to apply corporate sustainability ESG strategy and maximize the use of reporting tools in order to facilitate meeting US, EU and other global legislation. Register on time for the Europe- Asia | Certified Sustainability (ESG) Practitioner Program, Advanced Edition, being held on February 22-23 & 24, 2023.
For more information, please contact [email protected]