ESG has risen in prominence over the past couple of years, accelerated by the pandemic and the climate emergency. It’s a regulatory and reporting framework that’s still evolving, and which every business is on a journey to understand.
Although there’s no global standard for ESG reporting, there’s still a huge range of legal reporting requirements for businesses. In the UK alone there is a wide variety of existing and incoming legislation that involves important elements of ESG. These include gender pay gap reporting and modern slavery statements.
The current ESG reporting framework can be confusing, not least because what you need to report on can differ depending on:
- The size of your company
- Whether it’s listed
- Whether your business operates in the regulated financial services sector.
Is Your Business Ready For ESG?
ESG isn’t just about risk management. It’s about everything your organisation does and how it goes about doing it. It also gives you opportunities. Showing your sustainable practices can buy long-term goodwill with your customers and stakeholders.
The reality is that most corporations are already thinking about ESG. We recently ran a survey with the Legal 500 and GC magazine. 96% of the in-house lawyers we surveyed said their business had an ESG plan or is working on one.
But is it the right plan? Defining your business’s risk factors early-on, and incorporating them into your existing risk frameworks is key to staying ahead of the regulation that’s coming.
Call our ESG lawyers on 0808 271 2602 for a discussion about how we can help your organisation prepare.