More regulations requiring UK Companies to disclose on sustainability


Large companies in the UK need (i) to disclose information about corporate responsibility in the Annual Report and Accounts, and (ii) show how the corporate sustainability work is aligned to the business.

Building on various previous legislation, the Companies, Partnerships and Groups (Accounts and Non-Financial Reporting) Regulations 2016 came into force in 2017.

The regulation more or less provides the structure of what ‘non-financial’ information is to be in the Strategic Report section of the Annual Report and Accounts.

Companies that are subject to the small companies regime or that are medium-sized are ineligible. 

What drives ineligible companies to disclose? 

Well, it depends, but mainly it’s customer pressure, investor expectation, reputation preservation, value creation, differentiation…

What does the regulation require?

The regulation (s.414CB) asks for information on the following: environment, employees, social matters, human rights, anti-corruption.

The rules require “non-financial information statement must contain information, to the extent necessary for an understanding of the company’s development, performance and position and the impact of its activity” relating to such topics.

The rules ask for information on:

  • The company’s business model – rather like the <IR> Framework.
  • Policies and their outcomes
  • Due diligence
  • Significant risks and the management of them
  • Relevant KPIs.

Luckily, most companies will have a handle on this. 

But, if not, do give us a call

It’s relatively pain-free!


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