Asked by: Lord Cruddas (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what are the terms and scope of the Review of Non-Financial Reporting; who is undertaking that review; and when it will be available for scrutiny by members of the House of Lords.
Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)
The Government published the “Smarter regulation non-financial reporting review: call for evidence” in May 2023, seeing views on the non-financial disclosure requirements under the Companies Act, particularly the Strategic and Directors’ Reports. A list of requirements in scope of the review can be found at: https://www.gov.uk/government/calls-for-evidence/smarter-regulation-non-financial-reporting-review-call-for-evidence/annex-individual-reporting-requirements. The review is being undertaken by the Department for Business and Trade with assistance from the Financial Reporting Council. The findings of the review will be published, and any resulting legislative changes will be laid before Parliament for scrutiny in due course.
Asked by: Lord Cruddas (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what support they provide to UK businesses so that, in the process of meeting their environmental, social and governance obligations, they are still able to meet their core business objectives.
Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)
The Government aims to ensure any reporting obligations for companies are proportionate; with benefits that outweigh their costs. This includes reporting on environmental, social and governance matters. The Government is undertaking a review of non-financial reporting with a view to simplifying reporting requirements and reducing unnecessary burdens. It will also ensure that businesses continue to provide necessary transparency on environmental, social and governance matters to investors and other stakeholders.
Asked by: Lord Cruddas (Conservative - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what analysis they have made of the advantages and disadvantages of environmental, social and governance obligations on UK companies.
Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)
Reporting on environmental, social and governance matters provides transparency to investors and other stakeholders, improving investment decisions. The Government believes that a mix of voluntary and mandatory reporting provides the right balance between transparency and reducing burdens on companies.
The Government supports the work of the International Sustainability Standards Board, which aims to align sustainability reporting globally, enabling investors to effectively compare investment decisions across markets. The Government is currently undertaking a Review of Non-Financial Reporting in order to reduce business burdens and will shortly consult on the next steps on the review.