Companies and LLPs ESG Regulatory Requirement

Last updated: 31 October 2022

The Companies and LLPs ESG (environmental, social and governance) Regulatory Requirement laws together cover all UK registered companies and Limited Liability Partnerships (LLPs) with over 500 employees having annual revenue of more than 500 million GBP, requiring them to produce a sustainability statement on climate-related disclosures in their annual strategic or energy and carbon reports.

The legislation also adds environmental reporting to all UK Public Interest Entities required to produce “non-financial information statements” under existing reporting regulations. The language of the regulation only applies to environmental risk factors and thus requires companies to report the following: 

  • A listing and description of environmental risks identified as impacting the company’s operations.
  • The company’s governance strategy for assessing and managing environmental risk that takes into account different environmental outcomes.
  • The scope for the assessment (e.g., fiscal year 20xx).
  • List and description of environmental goals and key performance indicators (KPIs) used to measure environmental risk performance.
  • The process used to identify, assess, and manage environmental risks.
  • The company’s process for integrating environmental risk into the broader enterprise risk management (ERM) strategy.

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