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Friday 5
CSReady
23 August, 2024
They say imitation is the sincerest form of flattery, and the UK seems to agree, as it steps up efforts to raise the bar for transparency in sustainability, following the EU’s lead with the Corporate Sustainability Reporting Directive (CSRD).
Chancellor Rachel Reeves recently announced a new bill to regulate ESG rating agencies. This comes amidst a global push for increased transparency in a sector that has historically operated with little oversight, despite influencing trillions of pounds in investments. The regulation of ESG ratings is part of a broader movement to ensure that companies provide more accurate and consistent sustainability data so that investors – and other audiences – can make better decisions and engage more effectively with businesses on their impact areas.
As more and more companies with European operations fall within the scope of CSRD, we expect to see non-EU companies begin to align with these standards as CSRD reporting becomes the industry gold standard. As peers begin to increase and improve disclosure, customer and investor expectations will grow across the board – it would be a brave business who decided to ignore this and forge its own path. A rising tide, as they say, lifts all boats. CSRD brings consistency and comparability to reporting, allowing stakeholders to make informed decisions and better understand the sustainability landscape.
As stakeholders look to CSRD as the benchmark for best practice, UK businesses must not only prepare for incoming regulations but also adapt to growing public pressure and the evolving expectations around sustainability reporting. In the UK, the Sustainability Disclosure Standards (UK SDS), introduced by the previous government, will soon require businesses to disclose more around their sustainability-related risks and opportunities. Now is the time to get ahead of these changes and embrace the new standard of accountability. So even if you are not currently grappling with what CSRD means for your business, come and talk to us.
By Meg Seckel