Under new rules announced by the Treasury, financial services companies, asset managers, investment products, and pension schemes will have to publicly disclose their environmental impact and justify all sustainability claims.
The aim of these requirements is to combat greenwashing and assist the UK in reaching its emission reduction targets.
Companies are set to disclose information through the International Sustainability Standards Board (ISSB) issued standards. The ISSB will be established later this year and will develop global baseline standards for sustainability reporting, focused on material information for investors. Companies will also be expected to explain their activities’ level of alignment with the UK Green Taxonomy. The UK Green Taxonomy will define the criteria that specific economic activities must fulfil in order to be environmentally sustainable.
While some of the details for the new sustainability disclosure requirements are yet to be decided, it’s a good idea for businesses to get a head start by measuring and managing their environmental impact now. ESI Monitor’s FutureTrack provides organisations with verified, top grade sustainability data, consistent with the GHG Protocol and ISO 14064 methodologies. This means it is valid in any reporting and disclosure requirements.
