Historically, ESG reporting has mostly been mostly voluntary. However, an increasing number of regulators are moving towards mandated reporting and are enforcing a minimum standard of performance. The extent to which a firm needs to report on their ESG metrics is dictated by the geographical scope of the business, its annual turnover, the sector it operates in, and its number of employees.
Most regulators are adopting a phased approach to legislative enforcement, meaning that the inclusion criteria for those who need to reporton their ESG metrics are gradually being expanded. KEY ESG software allows your organisation to remain adherent to all relevant regulations, and stay ahead of the curve if you'd like to get a head start before they come into force.
The following examples illustrate that regulation is in place, or expected to come into place, across each of the three dimensions: Environment, Social and Governance.
- The EU Commission's implementation of the Corporate Sustainability Reporting Directive (CSRD) for organisations in the EEA
- The FCA's publication of a review into SDR, due in June 2024
- The SEC's ongoing review of its Climate Discloure Laws
These are only a few examples and demonstrate the trand towards increasingly strict regulation on ESG metrics across the globe.
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