Conservatives pledge to scrap ‘stifling’ ESG reporting for British businesses

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The Conservatives have pledged to scrap all mandatory reporting related to sustainability and climate change as they focus on business-friendly policy commitments. The party has argued that environmental, social and governance (ESG) reporting has “mutated” into a thicket of red tape which reduces the competitiveness of British business. “[There] is no evidence that [reporting measures] are materially improving our environment or climate,” the party said in an official statement. ESG reporting has been required for all major listed UK companies since April 2022, having been brought in under then-Prime Minister Rishi Sunak. Shadow Business Secretary Andrew Griffith said the Conservatives are “under new management”. “Today some of our best firms are being hamstrung by having to report against a dense thicket of ESG metrics to be judged by self-appointed activists or regulators. “The Conservatives are serious about backing British businesses. That’s why we will scrap these ridiculous rules and free up businesses to deliver a stronger economy,” Griffith said. £300m annual saving The measures will save around £300m annually, the party said – £202m per year by scrapping mandatory climate related disclosures, £76.7m per year from audits and public disclosure, and £25.7m per year from the carbon reporting framework. Businesses will, however, be required to continue to meet substantive laws on the environment and protection of nature. The party had also pledged to repeal the Climate Change Act, which it described as a “drag anchor” on Britian’s economy. The plans, which will also tackle de-banking, build on the Conservative previous pledge to end the ban on the government’s UK Export Finance scheme being used to support exporters involved in gas and hydrocarbon projects, the party said. “From scrapping stamp duty on home purchases to get the housing market going, reversing Labour’s family business ‘death tax’ to opposing the governments Unemployment Bill, we will do what it takes to get growth going again,” Griffith said.