Trends across the pond tend to find there way across to the UK at some point, especially when it comes to audit matters.
In the US, audit committees are including more disclosures about oversight areas within the proxy statements of public companies about environmental, social and governance (ESG).
Why the need for such reporting – more often than not its what investors expect.
ESG factors have already become an important consideration for many businesses, investors and regulators in the UK. While ESG is not currently a mandatory requirement under UK law, there are growing expectations from investors, customers and stakeholders that companies should prioritise sustainability and responsible business practices.
In the UK, companies are required to disclose certain information about their environmental and social impact as part of their annual reports under Companies Act 2006. The UK government is also considering the introduction of new laws and regulations to further promote sustainable business practices and address climate change.
Furthermore, the UK financial regulator, the Financial Conduct Authority (FCA), has introduced rules requiring asset managers, pension funds, and other financial institutions to consider and disclose the impact of their investments on ESG factors. This demonstrates the growing importance of ESG considerations on the UK compliance framework.
How can Risk Dashboard help?
Over the past 18 months, as part of the ongoing development of Risk Dashboard content, we are continually supporting advisory through the creation of modules specifically for ESG. Asking the key questions of business owners collecting the data and understanding of their credentials on ESG. Whilst presenting the necessary guidance to adopt ESG ‘standards’ for the future.
While ESG is not yet fully integrated into the UK compliance framework, it is certainly a growing area of focus and is likely to become more prominent in the coming years.
Why Risk Dashboard?
Real-time, evidence-based data is at the epicentre of Risk Dashboards software, allowing businesses to function and transform how they support the detection and monitoring of risks.
Risk Dashboard supports the advisor transition from risk management as a stand alone activity to a quantitative tool built into key decisions and processes of an organisation.
If you would like to know more about how Risk Dashboard can help in creating your ESG obligation please contact Neil Campbell, Commercial Director at Risk Dashboard on info@riskdashboard.co.uk