Module Application
Does the organisation manage its environmental impact and report information in accordance with applicable ETS, TCFD, ESOS, SECR, and CSRD requirements?
Does the organisation perform modern slavery due diligence, publish gender pay gap information, and ensure the health and safety of workers to create a positive social impact?
Does the organisation implement robust corporate governance arrangements that align with the applicable legal, regulatory, and ethical standards?
Does the organisation disclose all environmental, social, and governance information necessary to meet strategic reporting obligations and ensure annual reports provide a true and fair reflection of the organisation’s prospects?
Module Scope
Environmental, Social, and Governance (ESG) is a broad term that encapsulates all efforts undertaken by organisations to ensure and communicate the sustainability of their operations. Originally undertaken on a purely voluntary basis, organisations around the world are increasingly subject to regulatory requirements that sit beneath the ESG umbrella.
In the UK, the primary mandatory ESG regimes consist of:
- Emissions Trading Scheme: a market-based scheme designed to incentivise major emitters to reduce their greenhouse gas emissions
- Energy Savings Opportunity Scheme: a system of mandatory energy consumption assessments occurring every four years
- Streamlined Energy and Carbon Reporting framework: requires companies to disclose energy use and emissions information in annual directors’ reports
- Corporate Sustainability Reporting Directive: a comprehensive and mandatory ESG reporting regime implemented by the European Union, and
- UK Corporate Governance Code: sets requirements for the governance arrangements of companies on a comply-or-explain basis
In addition to meeting applicable mandatory ESG obligations, organisations may choose to comply with voluntary regimes designed to improve their transparency and sustainability, such as the Task Force on Climate-Related Financial Disclosures Recommendations, which govern how organisations should disclose climate-related risks and opportunities. The UK ESG module focuses on providing practical assistance to UK organisations to ensure compliance with both mandatory and voluntary regimes.
The key topics covered in this module are:
- Environmental Impact
- Social Impact
- Responsible Governance
- Reporting
The module encompasses a range of key instruments including:
- Bribery Act 2010
- Companies Act 2006
- Corporate Sustainability Reporting Directive
- Data Protection Act 2018
- Equality Act 2010
- Modern Slavery Act 2015
- UK Corporate Governance Code 2024
Relevant regulators in this area include:
- Financial Conduct Authority
- Financial Reporting Council
- Information Commissioner’s Office
- Equality and Human Rights Commission
- Department for Business, Energy & Industrial Strategy
- Environment Agency
- HM Revenue & Customs
The UK ESG module empowers organisations to meet their ESG obligations by providing comprehensive guidance on critical topics such as energy and emissions disclosures and gender pay gap reporting. Covering key regulations such as the UK Emissions Trading Scheme, the Equality Act 2010, and the UK Corporate Governance Code 2024, the module equips organisations with the knowledge and tools to integrate ESG principles into their governance and operations. By fostering accountability and promoting a proactive approach to compliance, organisations can build stakeholder trust, mitigate risks effectively, and position themselves as leaders in the transition to a sustainable economy.
Non-compliance with ESG regulations can have severe consequences for UK organisations, such as heavy fines, penalties and criminal charges, including terms of imprisonment. Directors of organisations can also be found to be personally liable in some circumstances.
The module does not cover the rights or entitlements of individuals who have suffered damages or losses due to breaches of obligations by UK organisations. The module does not cover the process that an entity or an individual would follow to report or seek compensation for the breach or their loss.