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The roadmap introduces sustainability disclosure requirements for UK companies and reveals further developments in relation to a UK Green Taxonomy.

By David Berman, Paul A. Davies, Nicola Higgs, Michael D. Green, Anne Mainwaring, and James Bee

On 18 October 2021, the UK government released a report titled “Greening Finance: Roadmap to Sustainable Investing” (the Roadmap), which is intended to encourage UK businesses and investors to have regard to climate and other environmental, social, and governance (ESG) considerations in their decision-making processes. The Roadmap follows the government’s 2019 Green Finance Strategy, which set out a suite of policies to assist in aligning UK financial flows with a low-carbon planet.

The government states that it views the task of “greening the financial system”[1] as composed of three fundamental phases. The Roadmap addresses the first phase: informing investors and consumers and addressing the information gap in relation to environmental and sustainability  issues between corporates and investors.[2] Notably, the Roadmap also introduces sustainability disclosure requirements (SDR) for UK companies and reveals further developments in relation to the UK Green Taxonomy (Taxonomy). In addition, the Roadmap identifies proposed timeframes for further developments on each of these topics.

By Jörn Kassow and Eun-Kyung Lee

On June 9, 2017, the European Commission (EC) published its Action Plan to Streamline Environmental Reporting (COM(2017) 312), summarising the findings of its review of reporting requirements following the 2015 ‘Better Regulation Initiative.’

As part of this 2015 Initiative, the EC carried out a fitness check focused on assessing environmental reporting and monitoring. While environmental as well as regulatory monitoring and reporting provide essential facts for informed decision-making and implementation review, the EC acknowledges the need to balance the demand for better information with the related costs for Member States and businesses. The estimated cost of reporting obligations — solely for the authorities involved — amounts to approximately €22 million a year.

In its recently published action plan, the EC summarised the findings of its fitness check and outlined a roadmap for action. In summary, the EC found that there is room for improvement, particularly in terms of effectiveness, efficiency, and coherence of reporting obligations. The EC also concluded that the content of environmental reporting could focus more on strategic, quantitative, and regulation-driven information, e.g., by using key indicators to reduce the amount of textual information currently requested.