Overview

Our ESG timeline sets out recent and expected UK and EU legal and regulatory developments relating to ESG and wider sustainable business topics. The timeline can be filtered according to your business type or the relevant ESG theme.

We intend to update the timeline quarterly. The last full update was in July 2022. 

Now Reading

Timeline by business type

Note on filters: The filters select the key obligations which are specifically relevant for that business category but additional obligations may apply to a particular business based on its size, structure or activities. For example, some of the obligations listed under Larger Businesses may be relevant to other business types, such as Listed Companies, depending on business size.

  • UK premium-listed companies subject to TCFD disclosure requirements


    TCFD – climate-related disclosure requirements apply to commercial companies with a UK premium listing for accounting periods beginning on or after 01/01/2021: see our briefing on the consultation on mandatory climate reporting.

    In scope: UK premium-listed companies

    Theme: ESG

  • A UK Emissions Trading Scheme (UK ETS) replaced the UK’s participation in the EU ETS


    In scope: Stationary installations holding (or liable to hold): (i) a greenhouse gas emissions permit, including power generators; certain large industrial premises and manufacturers, including food processing plants; certain public sector facilities; and (ii) an excluded installation emissions permit (small emitters and hospitals)

    Theme: Climate change, environment and resources 

  • New immigration regime takes effect


    New immigration regime: free movement for nationals of the European Economic Area (EEA) and Switzerland ended and the new immigration regime took effect. Non-British/Irish nationals not covered by the UK/EU Withdrawal Agreement generally require visas for all but short-term visits to the UK, and no longer have an automatic right to work.

    In scope: All business organisations with EEA and/or Swiss workers subject to immigration rules.

    Theme: People

  • DAC6 - start of "30-day window"


    Start of the "30 day" window for making the first reports under the new DAC6 regime. The deadline for reports was delayed as a response to the Covid-19 pandemic. Under the regime, intermediaries or, in some cases, taxpayers themselves, are required to report cross-border arrangements which satisfy certain hallmarks.

    [Note: Following Brexit, scope of reporting in UK restricted to disclosure of limited situations concerning the automatic exchange of information and beneficial ownership. DAC 6 expected to be replaced in Summer 2022 by a similar regime, based on the OECD's mandatory disclosure rules under BEPS Action 12 (see below)]

    In scope: All business organisations

    Theme: Tax

  • EU Conflict Minerals Regulation (which applies to importers of certain minerals) in force


    In scope: Business organisations importing any "conflict minerals" (tin, tantalum and tungsten and their ores, and gold, so-called "3TG" minerals)

    Theme: Climate change, environment and resources

  • Closure of EC consultation on sustainable corporate governance


    Closure of the European Commission consultation on a potential EU-wide initiative on sustainable corporate governance.

    In scope: All business organisations

    Theme: ESG

  • Pensions Climate Risk Industry Group guidance on TCFD disclosures published


    Non-statutory guidance for occupational pension scheme trustees on assessing, managing and reporting climate-related risks in line with the TCFD (Taskforce on Climate-Related Financial Disclosures) was published by the Pensions Climate Risk Industry Group.

    In scope: Pension scheme trustees

    Theme: ESG

  • SFDR – majority of disclosure obligations apply to in-scope entities


    Disclosure Regulation (EU) 2019/2088 – key applicable date for sustainability-related disclosures in the financial sector ("SFDR"): The majority of the disclosure obligations apply: sustainability-related disclosures on the website for in-scope entities and in relevant pre-contractual information for products in market (additional disclosure requirements for larger in scope participants required from 30 June 2021).

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

    Theme: ESG

  • SECR reporting required for financial years ending on or after 31 Dec 2020


    Streamlined Energy and Carbon Reporting ("SECR") – latest year-end date for in scope entities to include SECR reporting in annual reports.

    In scope: All quoted companies

    Qualifying conditions:

    • Turnover greater than or equal to £36m
    • Balance sheet or assets greater than or equal to £18m
    • Number of employees greater than or equal to 250

    Theme: Climate change, environment and resources

  • New Off-Payroll Working Rules in force


    New off-payroll working rules came into force following delays due to the Covid-19 pandemic.

    In scope: All public sector entities; Large and medium-sized businesses which meet 2 or more of the qualifying conditions

    Theme: Tax

  • Proposal for EU Corporate Sustainability Reporting Directive


    Proposal for EU Corporate Sustainability Reporting Directive to expand sustainability reporting requirements and extend to all large companies and most listed companies.

    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

    Theme: ESG

  • European Commission adopts Zero Pollution Action Plan


    European Commission adopted its "zero pollution action plan" (part of the EU Green Deal) with a view to promoting the protection of air, soil and water.

    In scope: All business organisations

    Theme: Climate change, environment and resources

  • Publication of statutory guidance for in scope pension scheme trustees on climate risk reporting


    Statutory guidance published by the Government on governance and reporting of climate change risk for in-scope occupational pension scheme trustees from 1 October 2021

    In scope: In scope pension scheme trustees

    Themes: ESG

  • Deadline for EEA and Swiss nationals covered by the withdrawal agreement between the UK and EU to apply for UK residence


    EU Settlement Scheme: deadline by which EEA and Swiss nationals covered by the withdrawal agreement between the UK and EU must have applied for UK residence status.

    In scope: All business organisations with EEA and/or Swiss workers subject to immigration rules

    Theme: People

  • TCFD disclosures required of largest pension schemes


    TCFD – Since 1 October 2021, trustees of occupational pension schemes with £5billion+ in assets, authorised master trusts and collective money purchase schemes are required under Pension Schemes Act 2021 regulations to comply with enhanced climate-related governance requirements, with the first public disclosures to be made within seven months of the current scheme year end

    In scope: Occupational pension schemes (£5bn+) and authorised master trust and collective money purchase pension schemes

    Qualifying condition:

    • Pension scheme assets greater than £5bn

    Theme: ESG

  • Announcement of Sustainability Disclosure Requirements to apply to companies, financial institutions and occupational pension schemes - effective date TBC


    HM Treasury published Greening Finance: A Roadmap to Sustainable Investing, which sets out the Government's strategy to align the financial system with the UK's commitment to net zero.  New Sustainability Disclosure Requirements (SDR) will contain a requirement for companies, financial institutions and occupational pension schemes to make additional sustainability disclosures, which will expand upon the existing TCFD climate-related disclosures framework. A new UK Green Taxonomy is also proposed.

    In scope: Companies, some financial institutions, and occupational pension schemes

    Theme: ESG

  • UK hosted 26th UN Climate Change Conference of the Parties (COP26)

    1 - 21 November 2021

    UK hosted the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow.

    In scope: All business organisations

    Theme: Climate change, environment and resources

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


    UK Sustainability Regime: FCA published discussion paper (DP21/4) on Sustainability Disclosure Requirements and investment product labels.

    In scope: UK asset managers and certain FCA-regulated asset owners

    Theme: ESG

  • New Office for Environmental Protection took charge of UK environment matters

    November 2021

    A new environmental watchdog, the Office for Environmental Protection ("OEP") took over environmental governance matters from the European Commission and ECJ under the new Environment Act 2021.

    The OEP's stated principal objectives are to contribute to environmental protection and hold the UK Government to account on environmental commitments.

    In scope: All business organisations

    Themes: Climate change, environment and resources

  • Publication of Pensions Regulator guidance on governance and reporting of climate-related risks and opportunities for in-scope occupational pension schemes


    Guidance for trustees of in-scope occupational pension schemes on the governance and reporting of climate-related risks and opportunities published by the Pensions Regulator.

    In scope: In-scope pension scheme trustees

    Theme: ESG

  • EU Whistleblowing Directive in force


    Whistleblowing Directive: deadline for EU member states to bring into force legislation transposing new Whistleblowing Directive, which will require employers to have a whistleblowing policy, with large organisations required to comply first.

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

    Qualifying condition: Number of employees greater than or equal to 250 initially

    Theme: People

  • Closure of IFRS Foundation consultation on global sustainability standards


    Closure of IFRS Foundation consultation on the need for global sustainability standards.

    Note: In Nov 2021, the IFRS Foundation announced the formation of the International Sustainability Standards Board. Consolidation of the existing Climate Disclosure Standards Board into the ISSB took place in January 2022 followed by the Value Reporting Foundation on 1 August 2022.

    In scope: All business organisations

    Theme: ESG

  • Parker ethnic diversity target in force


    Parker ethnic diversity target: Target date for companies to meet the Parker Review aim of there being at least one director of colour on each FTSE 100 board.

    In scope: Listed companies – FTSE 100

    Theme: People

  • SFDR – periodic disclosure reporting requirements start to apply


    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

    Theme: ESG

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


    EU Taxonomy Regulation – applicable date for the establishment of a framework to facilitate sustainable investment: EU Taxonomy Climate Delegated Act, the delegated act 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 relation to those objectives. 

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

    Theme: Climate change, environment and resources

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


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

    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

    Theme: Climate change, environment and resources

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


    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: Balance sheet or assets: Asset managers with AuM >£50bn; Asset owners with in-scope assets of £25bn or more

    Theme: ESG

  • TCFD disclosures required of standard listed companies


    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

    Theme: ESG

  • TCFD disclosures required of banks and insurers


    TCFD - Banks, building societies and insurance companies obliged to disclose (on a comply or explain basis) compliance with the recommendations of the Taskforce on Climate-related Financial Disclosures.

    In scope: Banks, building societies and insurance companies

    Theme: ESG

  • 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

    Theme: Tax

  • Publication of draft Directive on corporate sustainability due diligence


    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 greater than or equal to EUR 150m (EUR 40m in high-risk sectors)
    • Number of employees >500 (>250 in high-risk sectors)

     

    Theme: ESG

  • BEIS guidance on TCFD disclosures available


    BIES 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.

    Theme: ESG

  • 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

    Theme: ESG

  • 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.

    Theme: People

  • 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 

    Theme: People

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


    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.

    Theme: ESG

  • 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 

    Theme: Tax

  • Implementing MDR in the UK

    Expected Summer 2022

    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 (see above). As at July 2022, final regulations yet to be published and no effective date has been announced.

    In scope: All business organisations

    Theme: Tax

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


    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

    Theme: ESG

  • Integration of sustainability into EU MiFID organisational requirements and operating conditions


    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)

    Theme: ESG

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


    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

     

    Theme: ESG

  • UK Sustainability Disclosure Requirements (SDR) regime

    Early September 2022

    UK Sustainability Disclosure Requirements regime (SDR) – FCA consultation paper expected.

    In scope: Asset managers; certain FCA-regulated asset owners

    Theme: ESG

  • Single Code of Practice for occupational pension schemes

    September 2022

    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

    Theme: ESG

  • Government to set new air quality targets under Environment Act


    Deadline for the UK Government to set new air quality targets under the Environment Act.

    In scope: All business organisations

    Theme: Climate change, environment and resources

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


    Regulations are expected to require trustees of certain occupational pension schemes to calculate and disclose a portfolio alignment metric, setting out the extent to which scheme investments are aligned with the Paris Agreement.

    In scope: Occupational pension schemes that are, or become, subject to the requirement to make TCFD-aligned disclosures under the Climate Change Governance and Reporting Regulations

    Qualifying condition: Pension scheme assets >£1bn

    Theme: ESG

  • TCFD disclosures required of >£1bn pension schemes


    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.

    In scope: Pension scheme trustees

    Qualifying condition: >£1bn pension scheme assets

    Theme: ESG

  • Sustainability factors to be integrated into EU MiFID II product governance


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

    In scope: Investment firms

    Theme: ESG

  • ESG disclosure requirements under EU Investment Firms Regulation to apply


    ESG disclosure requirements under EU Investment Firms Regulation to apply

    In scope: Larger investment firms

    Theme: ESG

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


    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

    Theme: ESG

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


    EU Taxonomy Regulation – key applicable dates for the establishment of a framework to facilitate sustainable investment: delegated acts on four remaining environmental objectives to apply. Additional reporting requirements may apply for Art 8 or 9 SFDR products in relation to those objectives.

    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 certain large public interest entities meeting relevant size criteria

    Theme: Climate change, environment and resources

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


    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

    Theme: Climate change, environment and resources

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


    EU Taxonomy Regulation – key applicable dates for the establishment of a framework to facilitate sustainable investment: 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

    Theme: ESG

  • SFDR – Regulatory Technical Standards to apply


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

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

    Theme: ESG

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


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

    In scope: Additional UK-authorised asset managers and asset owners, life insurers and FCA-regulated personal pension providers

    Qualifying condition: AuM >£5bn

    Theme: ESG

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


    For commercial properties there will be a prohibition on continuing to let properties with an EPC rating of "F" or "G". 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

    Theme: ESG

  • Expected publication of reporting standards under EU Corporate Sustainability Reporting Directive

    June 2023

    Expected date of publication of 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

     

    Theme: ESG

  • Proposed implementation of draft EU directive on shell entities (with effect from 1 January 2024)


    Proposed implementation of a draft EU directive designed to tackle misuse of entities resident in EU member states that do not have sufficient substance. In scope entities subject to adverse tax consequences and increased information reporting requirements

    (Proposed to come into effect on 1 January 2024)

    In scope: Entities that are tax resident in an EU member state.

    For more detail please see our recent briefing on the shell entity directive which includes a flowchart to help businesses navigate the new rules and assess whether they are in scope

    Theme: Tax

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


    Whistleblowing Directive: national implementing legislation to apply to small/medium private sector entities operating in the EU

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

    Qualifying conditions:

    • Number of employees 50-249

    Theme: People

  • Target date for global implementation of BEPS Pillar One rules

    2023

    Target date for global implementation of the OECD's BEPS Pillar One rules. 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: Extremely large MNEs. There are to be exclusions for extractives and regulated financial services

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

    Theme: Tax

  • Target date for global implementation of most of the BEPS Pillar Two rules

    2023 (but some rules to come into effect in 2024)

    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).

    Qualifying condition: revenue >€750m

    Theme: Tax

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


    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

    Theme: Climate change, environment and resources

  • Expected application of EU Corporate Sustainability Reporting Directive to PIEs

    1/1/2024 (TBC)

    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 

    Theme: ESG

  • Expected publication of reporting standards for high-risk sectors under EU Corporate Sustainability Reporting Directive

    June 2024

    Expected date of publication of reporting standards for specific high-risk sectors 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


    Theme: ESG

  • Parker ethnic diversity target for FTSE 250 in force


    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

    Theme: People

  • 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)

    Theme: ESG

  • 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 scheme trustees (subject to review)

    Theme: ESG

  • Expected application of EU Corporate Sustainability Reporting Directive to large companies

    1/1/2025 (TBC)

    Expected application of EU Corporate Sustainability Reporting Directive to large EU companies; sustainability reporting in 2026 for FY 2025

    In scope:

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

    Qualifying conditions - two of three criteria:

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

    Theme: ESG

  • Expected application of EU Corporate Sustainability Reporting Directive to listed SMEs

    1/1/2026 (TBC)

    Expected application of EU Corporate Sustainability Reporting Directive to Listed SMEs; sustainability reporting in 2027 for FY 2026

    In scope: Listed SMEs (except micro-enterprises)

    Theme: ESG

  • Expected application of EU Corporate Sustainability Reporting Directive to non-EU companies

    1/1/2028 (TBC)

    Expected application of EU Corporate Sustainability Reporting Directive to non-EU companies; sustainability reporting in 2029 for FY 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

    Theme: ESG

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


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

    Theme: ESG

  • 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 

    Theme: People

  • 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 

Timeline by ESG theme
  • UK premium-listed companies subject to TCFD disclosure requirements


    TCFD – climate-related disclosure requirements apply to commercial companies with a UK premium listing for accounting periods beginning on or after 01/01/2021: see our briefing on the consultation on mandatory climate reporting.

    In scope: UK premium-listed companies

  • A UK Emissions Trading Scheme (UK ETS) replaced the UK’s participation in the EU ETS


    A UK Emissions Trading Scheme (UK ETS) replaced the UK’s participation in the EU ETS.

    In scope: Stationary installations holding (or liable to hold): (i) a greenhouse gas emissions permit, including power generators; certain large industrial premises and manufacturers, including food processing plants; certain public sector facilities; and (ii) an excluded installation emissions permit (small emitters and hospitals)

  • New immigration regime takes effect


    New immigration regime: free movement for nationals of the European Economic Area (EEA) and Switzerland ended and the new immigration regime took effect. Non-British/Irish nationals not covered by the UK/EU Withdrawal Agreement generally require visas for all but short-term visits to the UK, and no longer have an automatic right to work.

    In scope: All business organisations with EEA and/or Swiss workers subject to immigration rules.

  • DAC6 - start of "30-day window"


    Start of the "30 day" window for making the first reports under the new DAC6 regime. The deadline for reports was delayed as a response to the Covid-19 pandemic. Under the regime, intermediaries or, in some cases, taxpayers themselves, are required to report cross-border arrangements which satisfy certain hallmarks.

    [Note: Following Brexit, scope of reporting in UK restricted to disclosure of limited situations concerning the automatic exchange of information and beneficial ownership. DAC 6 expected to be replaced in Summer 2022 by a similar regime, based on the OECD's mandatory disclosure rules under BEPS Action 12 (see below)]

    In scope: All business organisations

  • EU Conflict Minerals Regulation (which applies to importers of certain minerals) in force


    EU Conflict Minerals Regulation (which applies to importers of certain minerals) comes into force.

    In scope: Business organisations importing any "conflict minerals" (tin, tantalum and tungsten and their ores, and gold, so-called "3TG" minerals)

  • Closure of EC consultation on sustainable corporate governance


    Closure of the European Commission consultation on a potential EU-wide initiative on sustainable corporate governance.

    In scope: All business organisations

  • Pensions Climate Risk Industry Group guidance on TCFD disclosures published


    Non-statutory guidance for occupational pension scheme trustees on assessing, managing and reporting climate-related risks in line with the TCFD (Taskforce on Climate-Related Financial Disclosures) was published by the Pensions Climate Risk Industry Group.

    In scope: Pension scheme trustees

  • SFDR – majority of disclosure obligations apply to in-scope entities


    Disclosure Regulation (EU) 2019/2088 – key applicable date for sustainability-related disclosures in the financial sector ("SFDR"): The majority of the disclosure obligations apply: sustainability-related disclosures on the website for in-scope entities and in relevant pre-contractual information for products in market (additional disclosure requirements for larger in scope participants required from 30 June 2021).

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

  • SECR reporting required for financial years ending on or after 31 Dec 2020


    Streamlined Energy and Carbon Reporting ("SECR") – latest year-end date for in scope entities to include SECR reporting in annual reports.

    In scope: All quoted companies

    Qualifying conditions:

    • Turnover greater than or equal to £36m
    • Balance sheet or assets greater than or equal to £18m
    • Number of employees greater than or equal to 250
  • New Off-Payroll Working Rules in force


    New off-payroll working rules came into force following delays due to the Covid-19 pandemic.

    In scope: All public sector entities; Large and medium-sized businesses which meet 2 or more of the qualifying conditions

  • Proposal for EU Corporate Sustainability Reporting Directive


    Proposal for EU Corporate Sustainability Reporting Directive to expand sustainability reporting requirements and extend to all large companies and most listed companies.

    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
  • European Commission adopts Zero Pollution Action Plan


    European Commission adopted its "zero pollution action plan" (part of the EU Green Deal) with a view to promoting the protection of air, soil and water.

    In scope: All business organisations

  • Publication of statutory guidance for in scope pension scheme trustees on climate risk reporting


    Statutory guidance published by the Government on governance and reporting of climate change risk for in-scope occupational pension scheme trustees from 1 October 2021

    In scope: In scope pension scheme trustees

  • Deadline for EEA and Swiss nationals covered by the withdrawal agreement between the UK and EU to apply for UK residence.


    EU Settlement Scheme: deadline by which EEA and Swiss nationals covered by the withdrawal agreement between the UK and EU must have applied for UK residence status.

    In scope: All business organisations with EEA and/or Swiss workers subject to immigration rules

  • TCFD disclosures required of largest pension schemes


    TCFD – Since 1 October 2021, trustees of occupational pension schemes with £5billion+ in assets, authorised master trusts and collective money purchase schemes are required under Pension Schemes Act 2021 regulations to comply with enhanced climate-related governance requirements, with the first public disclosures to be made within seven months of the current scheme year end

    In scope: Occupational pension schemes (£5bn+) and authorised master trust and collective money purchase pension schemes

    Qualifying condition: Pension scheme assets greater than £5bn

  • Announcement of Sustainability Disclosure Requirements to apply to companies, financial institutions and occupational pension schemes - effective date TBC


    HM Treasury published Greening Finance: A Roadmap to Sustainable Investing, which sets out the Government's strategy to align the financial system with the UK's commitment to net zero.  New Sustainability Disclosure Requirements (SDR) will contain a requirement for companies, financial institutions and occupational pension schemes to make additional sustainability disclosures, which will expand upon the existing TCFD climate-related disclosures framework. A new UK Green Taxonomy is also proposed.

    In scope: Companies, some financial institutions, and occupational pension schemes

  • UK hosted 26th UN Climate Change Conference of the Parties (COP26)


    UK hosted the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow.

    In scope: All business organisations

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


    UK Sustainability Regime: FCA published discussion paper (DP21/4) on Sustainability Disclosure Requirements and investment product labels.

    In scope: UK asset managers and certain FCA-regulated asset owners

  • New Office for Environmental Protection took charge of UK environment matters

    November 2021

    A new environmental watchdog, the Office for Environmental Protection ("OEP") took over environmental governance matters from the European Commission and ECJ under the new Environment Act 2021.

    The OEP's stated principal objectives are to contribute to environmental protection and hold the UK Government to account on environmental commitments.

    In scope: All business organisations

  • Publication of Pensions Regulator guidance on governance and reporting of climate-related risks and opportunities for in-scope occupational pension schemes


    Guidance for trustees of in-scope occupational pension schemes on the governance and reporting of climate-related risks and opportunities published by the Pensions Regulator.

    In scope: In-scope pension scheme trustees

  • EU Whistleblowing Directive in force


    Whistleblowing Directive: deadline for EU member states to bring into force legislation transposing new Whistleblowing Directive, which will require employers to have a whistleblowing policy, with large organisations required to comply first.

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

    Qualifying condition: Number of employees greater than or equal to 250 initially

  • Closure of IFRS Foundation consultation on global sustainability standards


    Closure of IFRS Foundation consultation on the need for global sustainability standards.

    Note: In Nov 2021, the IFRS Foundation announced the formation of the International Sustainability Standards Board. Consolidation of the existing Climate Disclosure Standards Board into the ISSB took place in January 2022 followed by the Value Reporting Foundation on 1 August 2022.

    In scope: All business organisations

  • Parker ethnic diversity target in force


    Parker ethnic diversity target: Target date for companies to meet the Parker Review aim of there being at least one director of colour on each FTSE 100 board.

    In scope: Listed companies – FTSE 100

  • SFDR – periodic disclosure reporting requirements start to apply


    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


    EU Taxonomy Regulation – applicable date for the establishment of a framework to facilitate sustainable investment: EU Taxonomy Climate Delegated Act, the delegated act 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


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

    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


    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: Balance sheet or assets: Asset managers with AuM >£50bn; Asset owners with in-scope assets of £25bn or more

  • TCFD disclosures required of standard listed companies


    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

  • TCFD disclosures required of banks and insurers


    TCFD - Banks, building societies and insurance companies obliged to disclose (on a comply or explain basis) compliance with the recommendations of the Taskforce on Climate-related Financial Disclosures.

    In scope: Banks, building societies and insurance 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.

  • Publication of draft Directive on corporate sustainability due diligence


    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 greater than or equal to EUR 150m (EUR 40m in high-risk sectors)
    • Number of employees greater than 500 (or greater than 250 in high-risk sectors)
  • BEIS guidance on TCFD disclosures available


    BIES 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 less than 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


    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
  • Implementing MDR in the UK

    Expected Summer 2022

    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 (see above). As at July 2022, final regulations yet to be published and no effective date has been announced.

    In scope: All business organisations

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


    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

  • Integration of sustainability into EU MiFID organisational requirements and operating conditions


    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 proposal for draft standards under draft EU Corporate Sustainability Reporting Directive


    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
  • UK Sustainability Disclosure Requirements (SDR) regime

    Early September 2022

    UK Sustainability Disclosure Requirements regime (SDR) – FCA consultation paper expected.

    In scope: Asset managers; certain FCA-regulated asset owners

  • Single Code of Practice for occupational pension schemes

    September 2022

    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

  • Government to set new air quality targets under Environment Act


    Deadline for the UK Government to set new air quality targets under the Environment Act.

    In scope: All business organisations

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


    Regulations are expected to require trustees of certain occupational pension schemes to calculate and disclose a portfolio alignment metric, setting out the extent to which scheme investments are aligned with the Paris Agreement.

    In scope: Occupational pension schemes that are, or become, subject to the requirement to make TCFD-aligned disclosures under the Climate Change Governance and Reporting Regulations

    Qualifying condition: Pension scheme assets >£1bn

  • TCFD disclosures required of >£1bn pension schemes


    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.

    In scope: Pension scheme trustees

    Qualifying condition: >£1bn pension scheme assets

  • Sustainability factors to be integrated into EU MiFID II product governance


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

    In scope: Investment firms

  • ESG disclosure requirements under EU Investment Firms Regulation to apply


    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)


    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

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


    EU Taxonomy Regulation – key applicable dates for the establishment of a framework to facilitate sustainable investment: delegated acts on four remaining environmental objectives to apply. Additional reporting requirements may apply for Art 8 or 9 SFDR products in relation to those objectives.

    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 certain large public interest entities meeting relevant size criteria

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


    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


    EU Taxonomy Regulation – key applicable dates for the establishment of a framework to facilitate sustainable investment: 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


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


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

    In scope: Additional UK-authorised asset managers and asset owners, life insurers and FCA-regulated personal pension providers

    Qualifying condition: AuM >£5bn

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


    For commercial properties there will be a prohibition on continuing to let properties with an EPC rating of "F" or "G". 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 publication of reporting standards under EU Corporate Sustainability Reporting Directive

    June 2023

    Expected date of publication of 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
  • Proposed implementation of draft EU directive on shell entities (with effect from 1 January 2024)


    Proposed implementation of a draft EU directive designed to tackle misuse of entities resident in EU member states that do not have sufficient substance. In scope entities subject to adverse tax consequences and increased information reporting requirements

    (Proposed to come into effect on 1 January 2024)

    In scope: Entities that are tax resident in an EU member state.

    For more detail please see our recent briefing on the shell entity directive which includes a flowchart to help businesses navigate the new rules and assess whether they are in scope

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


    EU Whistleblowing Directive: national implementing legislation to apply to small/medium private sector entities operating in the EU.

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

  • Target date for global implementation of BEPS Pillar One rules

    2023

    Target date for global implementation of the OECD's BEPS Pillar One rules. 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: Extremely large MNEs. There are to be exclusions for extractives and regulated financial services

    Qualifying condition: 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

    2023 (but some rules to come into effect in 2024)

    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).

    Qualifying condition: revenue >€750m

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


    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

  • Expected application of EU Corporate Sustainability Reporting Directive to PIEs

    1/1/2024 (TBC)

    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 

  • Expected publication of reporting standards for high-risk sectors under EU Corporate Sustainability Reporting Directive

    June 2024

    Expected date of publication of reporting standards for specific high-risk sectors 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
  • Parker ethnic diversity target for FTSE 250 in force


    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)

    Theme: ESG

  • 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 scheme trustees (subject to review)

  • Expected application of EU Corporate Sustainability Reporting Directive to large companies

    1/1/2025 (TBC)

    Expected application of EU Corporate Sustainability Reporting Directive to large EU companies; sustainability reporting in 2026 for FY 2025

    In scope:

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

    Qualifying conditions - two of three criteria:

    • Turnover of EUR 40m
    • Balance sheet of EUR20m
    • 250 employees
  • Expected application of EU Corporate Sustainability Reporting Directive to listed SMEs

    1/1/2026 (TBC)

    Expected application of EU Corporate Sustainability Reporting Directive to Listed SMEs; sustainability reporting in 2027 for FY 2026

    In scope: Listed SMEs (except micro-enterprises)

  • Expected application of EU Corporate Sustainability Reporting Directive to non-EU companies

    1/1/2028 (TBC)

    Expected application of EU Corporate Sustainability Reporting Directive to non-EU companies; sustainability reporting in 2029 for FY 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


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

  • 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 

This ESG timeline is for general information purposes only and does not constitute legal or any other type of professional advice. Travers Smith does not accept and, to the extent permitted by law, excludes, liability to any person for any loss which may arise from relying upon, or otherwise using the information contained in, the timeline.

Get in touch

For more information on People issues please contact Ed Mills.

For more information on Sustainable Finance issues, please contact Tim Lewis, Phil Bartram, Michael Raymond, Simon WitneyGeorge Weavil or Jonathan Gilmour.

For more information on Environment and Climate issues, please contact Doug Bryden.

For more information on Tax issues, please contact Madeline Gowlett or Hannah Manning.

For more information on Pensions issues, please contact Andy Lewis.

For more information on Governance issues, please contact Neal Watson or Doug Bryden.

For more information on Real Estate issues, please contact Alex Millar.

Key contacts

Read Doug Bryden Profile
Doug Bryden
Read Jonathan Gilmour Profile
Jonathan Gilmour
Read Tim Lewis Profile
Tim Lewis
Read Ed Mills Profile
Ed Mills
Read Neal Watson Profile
Neal  Watson
Read Simon Witney Profile
Simon Witney
Back To Top