Understanding Sustainability

UK-SECR is a UK government regulation requiring large businesses and certain other organisations to annually report on their energy use, greenhouse gas emissions and energy efficiency measures.

The FCA plans to introduce sustainability disclosure rules for certain firms that align with the EU's Sustainable Finance Disclosure Regulation requirements. New rules will require in-scope firms to disclose sustainability risks, adverse impacts, renumeration policies and promote transparency on ESG products.

The UK government has introduced mandatory climate-related financial disclosures for certain companies and financial institutions. This applies to UK registered companies with premium listings, financial institutions like banks/insurers and occupational pension schemes.

The ISSB IFRS S1 and S2 are the first two International Sustainability Standards issued by the International Sustainability Standards Board (ISSB) in June 2023. They aim to bring consistency and transparency to how companies disclose sustainability-related information in their financial reports.

The CSRD is a new European Union Directive adopted in April 2023. It aims to improve the comparability and reliability of sustainability reporting by companies. The ESRS are being developed by the European Financial Reporting Advisory Group (EFRAG) and will be mandatory for companies starting in 2024.

The EU Sustainable Finance Disclosure Regulation (SFDR) is a set of EU rules that aim to make the sustainability profile of funds and financial products more transparent and comparable for end investors.

The EU Sustainable Finance Taxonomy is a classification system established by the European Union to define environmentally sustainable economic activities.

The proposed SEC climate rules are still in the proposal stage and haven't been finalised. The rules would require public companies to disclose information on greenhouse gas (GHG) emissions.