Whilst Large UK companies have been required to disclose their carbon impact for a few years, Rishi Sunak looks to be seeking further enhancements to the disclosures that large UK businesses make on the environment.
This, combined with the news today that Ikea and Amazon will only use zero-carbon cargo vessels by 2040, is another piece of news raising sustainability to the top of the corporate agenda.
The government have clearly identified that less stick and more carrot is needed. Influencing what investors see outside of just the finances of a business might be the most critical step to accelerating the focus and investment needed to meet the environmental objectives.
And, as an auditor, it will be good to see how we can play our part.
Some large UK businesses will have to start disclosing their environmental impact, under new rules set to be brought in by the Treasury. The requirements will also apply to investment products and pension schemes. It comes ahead of November's COP26 meeting in Glasgow, where world leaders will discuss their climate commitments. Experts say the UK, which is hosting the event, is not currently on track to meet its own emissions targets. Boris Johnson has pledged to cut emissions by 78% by 2035, compared with 1990 levels. The Treasury said the new sustainability disclosure requirements (SDR) mean an investment product will now have to set out the environmental impact of the activities it finances. In addition, a company's sustainability claims will have to be justified "clearly", and their net zero transition plans properly set out.
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