Law and policy
One of the key regulatory bases for ESG are some sections of the Companies Act 2006 which applies across the four nations and relate to company reporting. However, there are also provisions in the Modern Slavery Act 2015, Equality Act 2010 and indirectly aspects of the Climate Change Act 2008. Moreover, much of the work aligning to ESG does not derive from national legislation or rules but instead from private arrangements such as securing certification to ISO14001 or by committing to another form of corporate management to secure continuous environmental and social improvement. Other non-government bodies may also provide information on ESG, for instance the Confederation of British Industry (CBI) provides some information on ESG for Small and Medium Sized Enterprises (SMEs).
There are now mandatory climate-related reporting requirements for certain companies across the UK. The UK's Financial Conduct Authority regulates UK firms and set out requirements for disclosures relating to ESG and climate change matters.
These requirements responded to recommendations of the international body, Taskforce on climate-related financial disclosures, which consists of 31 members from the G20 countries.