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What are the UK sustainability reporting requirements and will UK Companies be impacted by CSRD?

Written by Transformacy | May 24, 2024 10:20:36 AM

As of now, #UKcompanies do not need to comply with the #CSRD. However, there is a possibility that the UK government will implement its own #sustainability reporting requirements in the future. If the UK #government does implement its own sustainability reporting requirements, it is likely that these requirements will be based on the CSRD.

 

The CSRD is an #EU directive that will require large companies and listed SMEs to report on their sustainability performance. The CSRD is expected to come into force in 2023, and it will have a significant #impact on UK companies.

The UK government has not yet made a decision on whether or not to implement its own sustainability reporting requirements. However, the government has said that it is considering the issue and that it will make a decision in due course.

If the UK government does implement its own sustainability reporting requirements, UK companies will need to comply with those requirements. However, even if the UK government does not implement its own sustainability reporting requirements, UK companies may still choose to comply with the CSRD #voluntarily. This is because the CSRD is a comprehensive set of standards for reporting on sustainability performance, and it can help companies to improve their sustainability performance and build trust with their stakeholders. 

If you are a UK company that is considering complying with the CSRD, you should start by assessing your current sustainability performance. You should also identify the sustainability issues that are most material to your business and develop a plan for reporting on your sustainability performance. You should also get your employees involved in the process and communicate your sustainability performance to your stakeholders.

As far as current UK sustainability reporting is concerned, here are some of the UK sustainability reporting requirements for companies:

  • Streamlined Energy and Carbon Reporting (#SECR) regulations: Large companies (those with more than 250 employees and/or a turnover of more than £36 million) are required to report on their energy use, greenhouse gas emissions, and water use under the SECR #regulations. These regulations came into effect in April 2019 and are enforced by the Department for Business, Energy and Industrial Strategy (#BEIS).

  • UK Corporate Governance Code: Publicly traded companies are also required to report on their sustainability performance under the UK Corporate Governance Code. The code was updated in 2018 to include a new section on sustainability, which requires companies to disclose their climate-related risks and opportunities.

  • Task Force on Climate-related Financial Disclosures (#TCFD): Many companies choose to report on their sustainability performance voluntarily. This is often done to attract investors and customers who are increasingly concerned about sustainability. There are a number of frameworks that companies can use to report on their sustainability performance, including the Global Reporting Initiative (#GRI) and the TCFD.

The UK sustainability requirements are constantly evolving, so it is important for companies to stay up-to-date on the latest developments. Sustainability regulations, compliance and reporting will keep growing and if you would like help in this area then transformacy can help. Please get in touch to find out how.