Understanding ESG in the UK

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>UK Corporate Governance Code: 

The UK Corporate Governance Code applies to companies listed on the London Stock Exchange. 

It emphasises the importance of governance structures that promote accountability, transparency, and sustainable business practices. 

Companies are required to report on how they integrate ESG considerations into their operations.

>Task Force on Climate-Related Financial Disclosures (TCFD): 

From April 2022, the UK government made it mandatory for large companies to report on climate-related financial risks and opportunities in line with TCFD recommendations. 

This requirement applies to:

• Listed companies
• Large private companies with over 500 employees and £500 million in turnover
• Financial institutions such as banks and insurers

These disclosures must cover governance, strategy, risk management, and metrics related to climate change. 

>Streamlined Energy and Carbon Reporting (SECR)

Introduced in 2019, SECR requires large UK companies to report on their energy use, carbon emissions, and energy efficiency actions. Companies must include these reports in their annual financial statements, demonstrating their commitment to reducing their carbon footprint.

The UK government has set ambitious climate targets, including achieving net zero carbon emissions by 2050. 

To meet these targets, businesses will face more stringent ESG requirements in the coming years. 

Key upcoming regulations include:

• Sustainability Disclosure Requirements (SDR): The SDR framework will require companies to disclose sustainability-related risks and opportunities. This will be aligned with global standards such as the International Sustainability Standards Board (ISSB) framework. The SDR aims to improve transparency and consistency in ESG reporting.
• Mandatory Biodiversity Reporting: In addition to carbon emissions, the UK is likely to introduce mandatory biodiversity reporting. This will require companies to assess and disclose their impact on biodiversity and natural resources.
• Extended Scope of ESG Reporting: The government is expected to extend ESG reporting requirements to more businesses, including SMEs. This will ensure that companies of all sizes contribute to the UK’s sustainability goals.

At iModus, we specialise in helping businesses reduce their carbon footprint and achieve ESG compliance through practical, cost-effective solutions. 

Here’s how we can support your ESG journey:

>Energy Efficiency Solutions

We provide a range of energy reduction technologies, including:

• LED Lighting
• Voltage Optimisation
• EV Charging Solutions
• Remote Metering

>Risk Management and Compliance Support

We help businesses identify and manage a range of compliance risks associated with ESG implementation. This includes ensuring safe operational practices, conducting site audits, and integrating risk management frameworks to support long-term sustainability goals.

>ESG Reporting Assistance

Our experts can guide you through the ESG reporting process, ensuring that you meet regulatory requirements such as TCFD and SECR. We provide data collection, analysis, and reporting services to streamline your compliance efforts.

>Future-Proofing Your Business

With upcoming ESG regulations on the horizon, Imodus helps businesses prepare for the future by:

• Identifying upcoming regulatory changes
• Implementing sustainable practices
• Ensuring continuous compliance

To comply with existing and future ESG regulations, UK businesses must:

• Conduct ESG assessments to identify environmental and social impacts.
• Integrate ESG into their business strategies and governance structures.
• Report on ESG performance through mandatory disclosures such as TCFD and SECR.
• Implement energy efficiency measures to reduce carbon emissions and improve sustainability.
• Stay informed about upcoming regulations to ensure compliance.

Adopting ESG practices is no longer optional for UK businesses. 

ESG compliance can:

• Improve your company's reputation
• Attract investment
• Enhance operational efficiency
• Reduce risk
• Ensure long-term sustainability

By partnering with iModus, you can take proactive steps to meet ESG requirements, reduce your carbon footprint and contribute to a more sustainable future.

Ready to transform your ESG strategy into a competitive advantage? 

Contact iModus and discover how our tailored solutions can help your business achieve compliance, reduce carbon emissions, and future-proof your operations in a rapidly evolving regulatory landscape.