Mansion House sustainable finance reforms should go further
Media statement
In her maiden Mansion House speech last week, the Chancellor unveiled a package of reforms aimed at delivering a world-leading sustainable finance framework that will reclaim the UK’s position as a climate change leader.
Commenting on the announced plans, Bruce Cartwright CA, CEO of the Institute of Chartered Accountants of Scotland (ICAS), said:
“Urgent progress is needed to develop a sustainable finance framework and green taxonomy for the UK, so we’re encouraged to see this prioritised in the Chancellor’s Mansion House agenda.
“While we welcome the commitment to consult next year on the UK Sustainability Reporting Standards for voluntary reporting by ‘economically significant companies’, we’d like this to go further. For some time, we’ve called for the government to make sustainability reporting mandatory, and to take a holistic approach. This would make sure that businesses properly account for their ESG impacts and put sustainability reporting on a deservedly equal footing to financial reporting.
“Limiting these standards by endorsing the investor-focused reporting model defined by the International Sustainability Standards Board (ISSB) leaves them too narrow in scope. We urge the UK government to consider impact materiality alongside the new standards, which will ultimately encourage more comprehensive reporting that better serves the needs of a broader range of stakeholders.
“We look forward to engaging with the government on the development and endorsement of these standards, as well as the wider package of sustainable finance reforms.”
