In-house lawyers: sustainability and corporate social responsibility (CSR) reporting
Produced in partnership with Ardea International
In-house lawyers: sustainability and corporate social responsibility (CSR) reporting

The following Environment guidance note Produced in partnership with Ardea International provides comprehensive and up to date legal information covering:

  • In-house lawyers: sustainability and corporate social responsibility (CSR) reporting
  • Introduction
  • Mandatory reporting on non-financial issues in the UK
  • The strategic report—duty to report on environmental and social issues
  • Additional environmental, social and human rights requirements for quoted companies
  • Mandatory greenhouse reporting
  • Modern Slavery Act 2015
  • Financial Reporting Council (FRC) guidance on strategic reports
  • Directive 2014/95/EU on disclosure of non-financial and diversity information
  • Voluntary reporting frameworks available internationally
  • more

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this content.

For further guidance, see Practice Note: Brexit—impact on environmental law and News Analysis: Brexit Bulletin—key updates, research tips and resources.

This guide has been written to provide an insight into some of the mandatory reporting requirements for companies on non-financial issues. It also explains what a sustainability report is and sets out the different voluntary reporting frameworks available in summary format.

Introduction

Investors, shareholders, customers and other stakeholders are demanding greater access to environmental and human rights information. The heightened emphasis on transparency and accountability through corporate governance and disclosure has renewed the focus on the triple bottom line, namely how an organisation is managing its environmental, social and economic impacts.

There are both mandatory and voluntary environmental and social reporting requirements and frameworks. Companies will have to determine:

  1. if they are required by law to disclose on their environmental and social issues

  2. the extent they have to disclose

  3. which voluntary frameworks they choose to adopt to produce a credible sustainability or Corporate Social Responsibility (CSR) report

Integrating CSR reporting into mainstream financial reporting demonstrates