ESG timeline

SFDR – periodic disclosure reporting requirements start to apply

01 January 2022

Disclosure Regulation (EU) 2019/2088 – key applicable dates for sustainability-related disclosures in the financial sector ("SFDR"): "Level 1" periodic disclosure reporting requirements begin to apply (but detailed RTS requirements postponed to 01/01/2023).

In scope: Banks, investment firms, asset managers, insurers

EU Taxonomy Regulation reporting requirements on climate change mitigation and adaption to apply; additional reporting may apply for Arts 8 or 9 SFDR products

01 January 2022

EU Taxonomy Regulation – applicable date for the establishment of a framework to facilitate sustainable investment: EU Taxonomy Climate Delegated Act, the delegated acts setting out technical screening criteria defining which activities contribute to climate change mitigation and adaptation to apply. Additional reporting requirements may also apply for Art 8 or 9 SFDR products.

In scope: Financial markets participants, issuers of financial products and large public interest entities

EU Taxonomy Regulation – Delegated Regulation specifying content and presentation of Article 8 disclosures to apply

01 January 2022

EU Taxonomy Regulation – applicable date for the Delegated Regulation specifying content and presentation of information to be disclosed under Article 8 (non-financial statements).

In scope: Certain large public interest entities meeting relevant size criteria

Qualifying conditions:

• Turnover greater than or equal to EUR40m
• Balance sheet or assets greater than or equal to EUR20m
• Number of employees greater than or equal to 500

UK TCFD disclosure requirements in force for largest asset managers and asset owners

01 January 2022

UK TCFD (FCA ESG rules) – largest UK-authorised asset managers and asset owners to make climate-related financial disclosures consistent with TCFD Recommendations and Recommended Disclosures. Publication deadline for first public disclosures 30/06/2023.

In scope: Largest UK-authorised asset managers and asset owners

Qualifying condition: Asset managers with AuM ≥£50bn; Asset owners with in-scope assets of £25bn or more

TCFD disclosure requirements for standard listed companies

01 January 2022

TCFD  – climate-related disclosure requirements apply to (i) issuers of standard listed shares other than equity shares and (ii) standard listed issuers of GDRs (in each case excluding investment entities and shell companies such as SPACs) for financial years beginning on or after 1 January 2022.

In scope: Standard listed companies

EU update on list of non-cooperative jurisdictions for tax purposes published

February 2022

EU update on list of non-cooperative jurisdictions for tax purposes published.  EU member states have introduced "defensive measures" which have adverse consequences for jurisdictions on the list. The list is updated twice a year.

In scope: Entities in or affected by countries on the EU list of non-cooperative jurisdictions for tax purposes.

FTSE Women Leaders Review

February 2022

Publication of the FTSE Women Leaders Review: an independent business-led framework supported by the Government, to build on the Hampton-Alexander Review. Will monitor women's representation in senior leadership positions in FSTSE 350 companies in the next 5 years.

In scope: FTSE 350 companies

Publication of draft Directive on corporate sustainability due diligence

23 February 2022

Publication of draft Directive on corporate sustainability due diligence (see our briefing)

In scope:

• Entities based in the EU meeting turnover and employee thresholds [Non-EU entities with significant turnover in the EU
  
  

Qualifying conditions:

• Turnover ≥ EUR 150m (≥ EUR 40m in high-risk sectors)
• Number of employees ≥500 (≥250 in high-risk sectors) (N/A to non-EU entities)

BEIS guidance on TCFD disclosures available

07 March 2022

BEIS published non-binding guidance on the requirement for larger private and public companies to make TCFD disclosures (see below). See our briefing note for more detail.

In scope: Listed companies and larger AIM-listed or private companies and LLPs

Qualifying conditions:

• Turnover ≥£500m*
  *application of thresholds varies depending on entity type. See our briefing for more detail.
• Number of employees ≥500*
  *application of thresholds varies depending on entity type. See our briefing for more detail.

Appendix added to Pensions Regulator guidance on governance and reporting of climate-related risks and opportunities for in-scope occupational pension schemes

March 2022

The Pensions Regulator added an appendix to its guidance for trustees of in-scope occupational pension schemes on the governance and reporting of climate-related risks and opportunities.

In scope: In-scope pension scheme trustees

New Listing Rules requirement re. board and senior management diversity targets

1 April 2022 (applies to financial years beginning on or after this date)

New requirement in Listing Rules for issuers to (1) publish an annual "comply or explain statement" in relation to prescribed board diversity targets; and (2) include numerical data on the sex or gender identity and ethnic diversity of a company's board and senior management.

In scope: Premium and standard listed UK and overseas companies, including closed-ended investment funds.

New disclosure requirement in DTRs re. diversity on board committees

1 April 2022 (applies to financial years beginning on or after this date)

New requirement in DTRs to disclose how the company’s diversity policy has applied to its remuneration, audit and nominations committees, having regard to diversity aspects such as ethnicity, sexual orientation, disability and socio-economic background.

In scope: UK listed issuers 

TCFD disclosures required of listed companies and large private and public companies and LLPs

06 April 2022

TCFD – listed companies, larger private and public companies, and LLPs required to make disclosures aligned with TCFD (Taskforce on Climate-Related Financial Disclosures) recommendations.  See our briefing note for more detail.

In scope: Larger non-premium listed companies, AIM-listed companies, larger private companies and LLPs

Qualifying conditions: 

• Turnover ≥£500m*
  *application of thresholds varies depending on entity type. See our briefing for more detail.
• Number of employees ≥500*
  *application of thresholds varies depending on entity type. See our briefing for more detail.

Tax returns filed after April 2022 may require disclosure of uncertain tax treatment

April 2022

Tax returns filed by large business organisations after this date are required to take into account a new requirement to notify HMRC where the business has adopted an uncertain tax treatment. 

In scope: Businesses whose UK turnover and/or balance sheet exceeds certain financial thresholds. There are some exceptions, e.g. collective investment schemes

Qualifying conditions:

• Turnover greater than or equal to £200m
• Balance sheet or assets greater than or equal to £2bn

EU AIFMs and EU UCITS managers to integrate sustainability risks and factors

01 August 2022

EU AIFMD/EU UCITS – sustainability risks and sustainability factors to be taken into account as part of operating conditions.

In scope: EU AIFMs; EU UCITS

Deadline for transposition of Transparent and Predictable Working Conditions Directive by EU Member States

01 August 2022

The Transparent and Predictable Working Conditions Directive is aimed at improving conditions for casual/zero hours workers - including compensation if an assignment is cancelled without reasonable notice, and a right to request more predictable working conditions after six months.

In scope: All business organisations

Integration of sustainability into EU MiFID organisational requirements and operating conditions

02 August 2022

EU MiFID II – certain investment firms to integrate sustainability factors, risks and preferences into organisational requirements and operating conditions.

In scope: Investment firms (financial advisers and portfolio managers)

Deadline for comment on draft standards under EU Corporate Sustainability Reporting Directive

08 August 2022

Deadline for comment on EFRAG exposure draft standards implementing the (draft) EU Corporate Sustainability Reporting Directive.

In scope:

• Listed companies which are public interest entities ("PIEs");
• Larger non-listed companies (ie. any non-listed company which is not an SME under the Accounting Directive);
• Listed SMEs (except micro-enterprises);
• Some financial institutions;
• Non-EU companies with significant turnover in the EU

New requirement for pension scheme trustees to calculate and report alignment with Paris Agreement

01 October 2022

Regulations require trustees of  occupational pension schemes with £1bn+ in assets to calculate and disclose an additional portfolio alignment metric, setting out the extent to which scheme investments are aligned with the Paris Agreement goal of limiting global temperature increase to 1.5° above pre-industrial levels.

In scope: Pension scheme trustees

Qualifying condition: Balance sheet or assets greater than or equal to Pension scheme assets >£1bn

TCFD disclosures required of ≥£1bn pension schemes

01 October 2022

TCFD - Trustees of occupational pension schemes with £1billion+ in assets required under Pension Schemes Act 2021 regulations to comply with enhanced climate governance requirements from October 2022, with the first TCFD-aligned public disclosures to be made within seven months of scheme year end. (Schemes with £5bn+ in assets were subject to the requirements a year earlier.)

In scope: Pension scheme trustees

Qualifying conditions: Pension scheme assets ≥£1bn

UK Sustainability Regime: FCA proposals for Sustainability Disclosure Requirements and investment labels

25 October 2022

FCA published a consultation paper (CP22/20) on Sustainability Disclosure Requirements (SDR) and investment labels 

FCA sets out proposals relating to sustainable investment product labels (three labels are proposed – sustainable focus, sustainable improvers and sustainable impact), naming and marketing rules (including a general 'anti-greenwashing' rule) and a Sustainable Disclosure Requirements regime (SDR): consumer facing product-level disclosures, pre-contractual disclosures, ongoing sustainability-related performance information, entity-level disclosures and detailed disclosure requirements for distributors of products.

The FCA intends the final rules to be effective 30 June 2023 – an 'anti-greenwashing' rule applicable to all firms will apply then, with the sustainable investment labels regime and the various elements of SDR to apply on a phased basis from 30 June 2024. See our briefing for further details.

In scope: All regulated firms (as regards 'anti-greenwashing' rule), otherwise UK asset managers; "portfolio managers" (extends to capture private equity and other private market advisory activities).

COP27 took place in Sharm El-Sheikh, Egypt

16 November 2022

Sharm El Sheikh, Egypt hosts 27th UN Climate Change Conference of the Parties (COP27)

In scope: All business organisations

Sustainability factors to be integrated into EU MiFID II product governance

22 November 2022

EU MiFID II – sustainability factors to be integrated into MiFID II product governance obligations.

In scope: Investment firms 

Ban on exclusivity clauses for lower paid workers in force

05 December 2022

The UK Government has introduced a ban on exclusivity clauses in employment contracts for lower paid workers (anyone earning below the lower earnings limit, currently £123 per week). An exclusivity clause is any clause which prevents the worker from working elsewhere (or requires the employer's consent to do so). Such clauses are prohibited in contracts for zero hours workers and, since 5 December 2022, are also unenforceable in contracts for lower paid workers.

In scope: All business organisations

Government sets targets under Environment Act

16 December 2022

UK Government published new targets under the Environment Act, including in respect of biodiversity, waste and air quality.

In scope: All business organisations

Adoption of Kunming-Montreal Global Biodiversity Framework

19 December 2022

Adoption of global biodiversity agreement at COP15.

In scope: All business organisations

ESG disclosure requirements under EU Investment Firms Regulation to apply

26 December 2022

ESG disclosure requirements under EU Investment Firms Regulation to apply

In scope: Larger investment firms

SFDR - Additional reporting requirements may apply (adverse sustainability impacts disclosed at a financial 'product' level)

30 December 2022

Disclosure Regulation (EU) 2019/2088 – key applicable dates for sustainability-related disclosures in the financial sector ("SFDR"): Additional reporting requirements may apply (adverse sustainability impacts disclosed at a financial 'product' level).

In scope: Banks, investment firms, asset managers, insurers

UK proposals for decarbonising Combined Heat and Power plant expected

31 December 2022

Late 2022

(See note on timing)Details expected of UK Government proposals to help incentivise transition away from fossil fuel Combined Heat and Power (CHP) plant, potentially including financial incentives.

NOTE: these were expected in late 2022 but no news as at Jan 2023.

In scope: All business organisations operating in the UK

Single Code of Practice for occupational pension schemes

01 January 2023

Early 2023

Pensions Regulator expected to lay a Single Code of Practice before Parliament; expected to include new content on scheme governance, broadening existing internal controls requirements to require occupational pension schemes to "establish and operate an effective system of governance including internal controls", which must be "proportionate to the size, nature, scale and complexity of the activities of the occupational pension scheme".

In scope: Pension scheme trustees with 100 or more members in their scheme

EU Taxonomy Regulation - reporting requirements on four remaining environmental objectives to apply; additional reporting may apply for Arts 8 or 9 SFDR products

01 January 2023

EU Taxonomy Regulation – delegated acts on four remaining environmental objectives (Water and Marine Resources, Circular Economy, Pollution Prevention and Biodiversity and Ecosystems) to apply. Additional reporting requirements may apply for Art 8 or 9 SFDR products in relation to those objectives.

In scope: Financial markets participants, issuers of financial products and large public interest entities meeting relevant size criteria

Qualifying conditions for large public interest entities:

• Turnover greater than or equal to EUR40m
• Balance sheet or assets greater than or equal to EUR20m
• Number of employees greater than or equal to 500

In scope: Financial markets participants, issuers of financial products and large public interest entities meeting relevant size criteria

EU Taxonomy Regulation – Delegated Regulation specifying content and presentation of Article 8 – additional disclosures to apply

01 January 2023

EU Taxonomy Regulation: Additional requirements under Delegated Regulation specifying content and presentation of information to be disclosed under Article 8 (non-financial statements) apply.

In scope: Large non-financial public interest entities

EU Taxonomy Regulation – inclusion of nuclear and natural gas in Taxonomy

01 January 2023

EU Taxonomy Regulation – application of the proposed Complementary Climate Delegated Act, amending the EU Taxonomy Climate Delegated Act and setting out the conditions under which nuclear and natural gas can be included.

In scope: Banks, investment firms, asset managers, insurers

SFDR – Regulatory Technical Standards to apply

01 January 2023

Disclosure Regulation (EU) 2019/2088 –sustainability-related disclosures in the financial sector ("SFDR"): Regulatory Technical Standards supplementing the SFDR requirements due to apply.

In scope: Banks, investment firms, asset managers, insurers

Additional UK TCFD disclosure requirements in force for asset managers and owners, life and personal pension providers

01 January 2023

UK TCFD (FCA ESG rules) – UK-authorised asset managers and asset owners, life insurers and FCA-regulated pension providers with in-scope assets ≥£5bn and asset owners with in-scope assets between £5bn and £25bn to make climate-related financial disclosures consistent with TCFD Recommendations. Publication deadline for first public disclosures 30/06/2024.

In scope: UK-authorised asset managers and asset owners

Qualifying condition: Balance sheet or assets greater than or equal to In-scope assets ≥£5bn (asset managers) or between £5bn and £25bn (asset owners)

CSRD enters into force

01 March 2023

Directive (EU) 2022/2464 on Corporate Sustainability Reporting in force.

In scope:

• Listed companies which are public interest entities ("PIEs");
• Larger non-listed companies (ie. any non-listed company which is not an SME under the Accounting Directive);
• Listed SMEs (except micro-enterprises);
• Some financial institutions;
• Non-EU companies with significant turnover in the EU.

End of transition period for implementation of the Register of Overseas Entities

01 March 2023

The Register of Overseas Entities came into force on 1 August 2022.  Before the end of the transition period on 31 January 2023, overseas entities that want to buy, sell or transfer qualifying property in the UK must register with Companies House and tell them who their registrable beneficial owners or managing officers are.  Overseas entities that acquired qualifying property on or after 1 January 1999 in England and Wales, or 8 December 2014 in Scotland, must notify Companies House about this.  Failure to register on time may lead to prosecution or civil financial penalties.  Overseas entities that fail to register will also find it difficult to sell, lease or raise charges over their land.

In scope: All overseas entities holding, disposing of, charging or acquiring UK real estate; UK registered real estate owners contracting with an overseas entity.

Implementing MDR in the UK

01 March 2023

Regulations to come into force implementing in the UK the OECD's Model Mandatory Disclosure Rules for CRS Avoidance Arrangements and Opaque Offshore Structures (MDR).  These regulations will replace the UK's similar DAC 6 rules currently in force. The Government has indicated that the MDR regulations will come into force "in the first half of 2023".

In scope: All business organisations

New Modern Slavery Bill expected

Early 2023

A new Modern Slavery Bill (proposing amendments to the Modern Slavery Act 2015) was announced in June 2022. Expected to be published in early 2023, the Bill is likely to introduce additional criminal offences designed to encourage businesses to address problem suppliers and make more accurate and complete statements.

In scope: All business organisations of a certain size operating in the UK

Qualifying condition: turnover greater than or equal to £36m

MEES Regulations Prohibition on letting properties with an EPC rating of F or less

01 April 2023

For commercial properties there will be a prohibition on continuing to let properties with an EPC rating of "F" or less. Whilst there is no express obligation to bring relevant properties up to a compliant standard under the MEES Regulations, local authorities will have enforcement powers, including the ability to impose penalties.

In scope: All business organisations

Expected adoption publication of reporting standards under EU CSRD

June 2023

Expected date of adoption  of delegated acts adopting cross-sector reporting standards under the Corporate Sustainability Reporting Directive

In scope: 

• Listed companies which are public interest entities ("PIEs");
• Larger non-listed companies (ie. any non-listed company which is not an SME under the Accounting Directive);
• Listed SMEs (except micro-enterprises);
• Some financial institutions;
• Non-EU companies with significant turnover in the EU.

Expected consultation on Future Buildings Standard

01 June 2023

Expected date of further consultation on the detailed technical aspects of the UK Government's Future Buildings Standard which will set out more stringent efficiency standards, to ensure that new buildings are 'zero carbon ready' from 2025.

In scope: All real estate developers in the UK

Deadline for FCA ESG disclosures for largest asset managers and owners

30 June 2023

Deadline for UK-authorised asset managers with in-scope assets ≥£50bn and asset owners with in-scope assets ≥£25bn to make climate-related financial disclosures consistent with TCFD Recommendations.

In scope: Largest UK-authorised asset managers and asset owners

Qualifying conditions: Balance sheet or assets greater than or equal to - In-scope assets ≥£50bn (asset managers) or ≥£25bn (asset owners)

First principal adverse impacts statement under SFDR regulatory technical standards

30 June 2023

First principal adverse impacts statement under SFDR regulatory technical standards.

In scope: Banks, investment firms, asset managers, insurers

UK Sustainability Disclosure Regime (SDR) and investment labels – final rules

30 June 2023

Mid-2023

FCA intends its final rules on a new regime for Sustainability Disclosure Requirements (SDR) and investment labelling to start coming into force on a phased basis, starting with a general 'anti-greenwashing' rule applicable to all firms which will be effective on 30/06/2023. Requirements applicable to sustainable investment labels, consumer-facing disclosures, pre-contractual disclosures, naming and marketing rules, ongoing sustainability-related performance information, entity-level disclosures and distributors are expected to become effective on specified dates between 30/06/2024 and 30/06/2026.

In scope:

• :  All regulated firms (as regards 'anti-greenwashing' rule), otherwise UK asset managers and "portfolio managers" (which extends to capture private equity and other private market advisory activities).

Revised text of EU's Pay Transparency Directive expected

01 July 2023

It is currently expected that the EU's Pay Transparency Directive will oblige all companies to provide certain information to jobseekers/employees; and larger companies (current proposals are 250+ employees, but lowering this to 50 is being discussed) to publicly report on gender pay gap. Recent negotiations suggest a gender action plan where pay gap is higher than 2.5% may also be required.

In scope: Larger businesses

Qualifying conditions: Number of employees greater than or equal to 50

UK Biodiversity Net Gain requirement applies to new developments in UK

01 November 2023

The UK's Environment Act 2021 will require all new real estate developments to deliver a 10% 'biodiversity net gain' from November 2023, which will effectively become a requirement of its planning permission. This can be delivered through on-site or off-site measures or a combination.

In scope: All businesses developing real estate in the UK

Deadline for Energy Efficiency Directive "Article 8" audit

01 December 2023

The EU Energy Efficiency Directive requires businesses to periodically audit their energy use and identify (and cost) potential energy savings. The deadline for audits varies across EU member states, but in most cases falls in late 2023.

In scope: All business organisations of a certain size operating in the EU

Qualifying conditions: Turnover: ≥£50m, Balance sheet or assets: ≥£43m, Employees: ≥250

Deadline for Energy Savings Opportunity Scheme (ESOS) Audit

05 December 2023

The UK's Energy Savings Opportunity Scheme requires businesses to periodically audit their energy use and identify (and cost) potential energy savings by 5 December 2023. Note that amendments expanding the scope of the UK regime are expected to take effect prior to this date, in early 2023.

Scope of the audit may need careful consideration in context of any applicable franchise/management arrangements.

In scope: All business organisations of a certain size operating in the UK

Qualifying conditions: Turnover greater than or equal to £50m, Balance sheet or assets greater than or equal to £43m, number of employees greater than or equal to 250

EU Whistleblowing Directive to apply to small/medium private sector entities

17 December 2023

EU Whistleblowing Directive: national implementing legislation to apply to small/medium private sector entities operating in the EU, requiring them to have a whistleblowing policy.

In scope: All business organisations of a certain size operating in the EU

Qualifying conditions: Number of employees 50-249  

Target date for global implementation of the OECD's BEPS Pillar One rules

End of 2023

Extremely large MNEs. There are to be exclusions for extractives and regulated financial services. The rules will reallocate 25% of the profits in excess of 10% of revenue of a multinational enterprise (MNE) to market jurisdictions where the MNE has a substantial engagement in that market, regardless of whether it has a physical presence there.

In scope: Global turnover above €20bn (reducing to €10bn in no earlier than seven years) and profitability above 10%

Target date for global implementation of most of the BEPS Pillar Two Rules

End 2023

Target date for global implementation of most of the OECD's BEPS Pillar Two rules. The main plank of Pillar Two is the Global anti-Base Erosion rules (GloBE rules) which seek to establish a global minimum corporate tax rate of 15% for multinational enterprises (MNEs). The UK and EU are not expected to implement any aspects of Pillar Two before 31 December 2022.

In scope:

Large MNEs. There are to be various exclusions, including for investment funds that are ultimate parent entities of an MNE group and pension funds (and any holding vehicles used by such funds).

Expected application of EU Corporate Sustainability Reporting Directive to PIEs

01 January 2024

Expected application of EU Corporate Sustainability Reporting Directive to EU public interest entities ("PIEs"); sustainability reporting in 2025 for FY 2024

In scope: PIEs and any entities already covered by the Non-Financial Reporting Directive 

EU Taxonomy Regulation – Delegated Regulation specifying content and presentation of Article 8 - additional disclosures to apply

01 January 2024

EU Taxonomy Regulation – Additional requirements under Delegated Regulation specifying content and presentation of information to be disclosed under Article 8 to apply.

In scope: Large financial public interest entities

Start of first reporting period under CSRD for PIEs

01 January 2024

Application of EU Corporate Sustainability Reporting Directive to large EU Public Interest Entities ("PIEs"); sustainability reporting in 2025 for FY beginning on or after 01-01 2024.

In scope: PIEs and any entities already covered by the Non-Financial Reporting Directive. Greater than or equal to 500 employees.

Start of first reporting period under CSRD for PIEs

01 January 2024

Late 2024 or early 2025 TBC

Application of EU Corporate Sustainability Reporting Directive to large EU Public Interest Entities ("PIEs"); sustainability reporting in 2025 for FY beginning on or after 01-01 2024.

In scope: PIEs and any entities already covered by the Non-Financial Reporting Directive

Qualifying conditions: Employees greater than or equal to 500

Expected publication of first sector-specific reporting standards under CSRD

01 June 2024

01 January 2025 (TBC)

Expected date of publication of first sector-specific reporting standards under the Corporate Sustainability Reporting Directive.

In scope:

• Listed companies which are public interest entities ("PIEs");
• Larger non-listed companies (ie. any non-listed company which is not an SME under the Accounting Directive);
• Listed SMEs (except micro-enterprises);
• Some financial institutions;
• Non-EU companies with significant turnover in the EU.

Additional deadline for FCA ESG disclosures for asset managers and owners

30 June 2024

The UK Government is currently consulting on a market framework for the regulation of heat networks, including general authorisations, zoning and other protections. This is intended to increase the development and up-take of heat networks.

In scope: Additional UK-authorised asset managers and asset owners

Qualifying conditions: In-scope assets ≥£5bn (asset managers) or between £5bn and £25bn (asset owners)

Possible application of new regulatory framework for Heat Networks

01 November 2024

The UK Government is currently consulting on a market framework for the regulation of heat networks, including general authorisations, zoning and other protections. This is intended to increase the development and up-take of heat networks.

In scope: All businesses developing real estate in the UK

Parker ethnic diversity target for FTSE 250 in force

31 December 2024

Parker ethnic diversity target for FTSE 250: The target date for companies to meet the Parker Review aim of there being at least one director of colour on each FTSE 250 board.

In scope: Listed companies – FTSE 250

Possible application of EU Corporate Sustainability Due Diligence Directive to certain EU and non-EU companies

2024 (TBC)

Possible application of EU Corporate Sustainability Due Diligence Directive imposing ESG due diligence requirements on certain EU and non-EU companies

In scope:

• "Group 1": Large EU companies and non-EU companies active in the EU;
• "Group 2": EU "high impact" companies and non-EU "high impact" companies active in the EU [*Note: Group 2 excludes financial sector]
  
  

Qualifying conditions:

• Turnover
  Group 1: Greater than EUR 150m net global turnover
  Group 2: EUR 40m net global turnover
• Number of employees
  Greater than 500 
  Greater than 250 (EU only)

TCFD governance and (later) disclosures may be required of smaller pension schemes

Late 2024 or early 2025 (TBC)

Smaller occupational pension schemes may become subject to TCFD governance and disclosure requirements. This is subject to a review in late 2023 and a consultation in 2024.

In scope: Pension trustees

Start of first reporting period under CSRD for large EU companies

01 January 2025 (TBC)

Application of CSRD to large EU companies; sustainability reporting in 2026 for FY beginning on or after 01-01-2025

In scope:

• Large companies not previously covered by the Non-financial Reporting Directive (ie. any company which is not an SME under the Accounting Directive)

• In each case, satisfying at least two of the three size criteria

Qualifying conditions:

• Turnover of ≥EUR 40m
• Balance sheet of ≥EUR20m
• ≥250 employees

UK's Future Buildings Standard implemented

01 January 2025

The Future Buildings Standard, which will set out more stringent efficiency standards, to ensure that new non-domestic buildings are zero carbon ready from 2025, is expected to be implemented at some point in 2025 (precise date to be confirmed) for all new non-domestic developments.

In scope: All businesses developing real estate in the UK

Board diversity voluntary target

01 January 2025

FTSE Women Leaders report of 2022 recommends that by end of 2025:

• FTSE 350 boards and leadership teams to have at least 40% women's representation and
• FTSE 350 companies to have at least one women in the Chair, Senior Independent Director role and/or CEO or FD role

In scope: Listed companies: FTSE 350

Energy Performance Certificates to be harmonised across EU

2025

Energy Performance Certificates to be harmonised across the EU, and trigger to obtain a certificate to be extended to include major renovations (in addition to sales and leases).

In scope: All businesses operating in the EU

Start of first reporting period under CSRD for listed SMEs

01 January 2026 (TBC)

Application of CSRD  to listed SMEs; sustainability reporting in 2027 for FY beginning on or after 01-01-2026.

In scope: Listed SMEs (except micro-enterprises)

EU board gender diversity requirements apply

30 June 2026

At least 40% of non-executive directors (or 33% of all directors) on the boards of large EU incorporated listed entities to be women, by 30 June 2026.

Applies where both employee threshold and one of the financial thresholds are met.

In scope: Large listed companies

Qualifying condition: Turnover ≥ EUR50m, Balance sheet or assets ≥ EUR43m, Number of employees ≥250

Application of CSRD to non-EU companies

01 January 2028

01 January 2028 (TBC)

Application of EU Corporate Sustainability Reporting Directive to non-EU companies; sustainability reporting in 2029 for FY beginning on or after 01-01-2028.

In scope: Non-EU companies with significant turnover in the EU

Qualifying condition: Turnover greater than or equal to EUR 150m in the EU

All rented non-domestic buildings must achieve EPC Band B, where cost-effective

01 January 2030

All rented non-domestic buildings must achieve EPC Band B, where cost-effective. This may involve introducing a performance-based rating scheme for large commercial and industrial buildings to provide investors and their tenants with more information on how to reduce energy consumption and lower both carbon emissions and energy bills.

In scope: All business organisations

Energy Performance of Buildings Directive to require new buildings to be zero emission

01 January 2030

EU Commission's proposed revisions to the Energy Performance of Buildings Directive (EPBD) intend to require all new buildings to be zero-emission as of 2030.

In scope: All business organisations developing real estate in the EU

New duty to prevent workplace sexual harassment

TBC

UK Government to introduce a positive duty on employers to prevent workplace sexual harassment, including harassment of staff by third parties. No date has been set.

 In scope: All businesses 

UK Government to introduce due diligence requirements to prevent forests and natural areas from being converted illegally into agricultural land

TBC

UK Government to amend the Environment Act to introduce due diligence requirements for larger businesses to prevent forests and natural areas from being converted illegally into agricultural land.

In scope: Larger businesses (based on turnover test to be confirmed) – subject to de minimis threshold for volume of commodity used

Theme: Climate change, environment and resources