Travers Smith's Sustainability Insights: UK takes another step towards mandatory sustainability disclosures

Last week, while the EU continues to debate how far to roll back its sustainability disclosure requirements, the UK took the next, tentative step forward in developing its own rulebook.  The UK is already ahead of the EU in mandating TCFD-style climate-related financial disclosures for many large UK companies and asset managers – including many large private companies.  It is now edging closer to more general sustainability disclosure requirements and, more controversially, mandatory climate transition plans. 

The UK hitched its wagon to emerging international sustainability standards some years ago, rejecting the EU's more prescriptive approach.  Progress has at times been sluggish but – although delays have been frustrating, and the resulting disclosures will not be as comprehensive as some would like – the lesson from the EU is that piling on too much, too soon can come back to bite.  Slow and steady might yet win this race.