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ESG Reporting Requirements in the UK: What is an ESG Report?
So, you’ve committed to becoming ESG certified to help your business strengthen its environmental, social, and governance performance, but what comes next?
Being compliant is more than just saying you’ll do something, you’ll need to set targets and record tangible proof that you’re meeting them. When you’re running a business full-time, this can seem like a lot of work, but it’s worth it.
We’ll walk you through everything you need to know about ESG reporting in the UK. From the requirements you’ll need to meet, to tips that will help you stick to your goals, we’ve got you covered.
In this blog:
What is ESG reporting?
Put simply, ESG reporting is the disclosure of any relevant data surrounding a company’s environmental, social, and governance (ESG) performance. This can range from figures on pollution levels to how many new hires received thorough Health & Safety training.
Sharing this data helps stakeholders to assess any risk areas, opportunities, and sustainability efforts clearly. With studies showing that 83% of global investors consider ESG disclosures critical to their investment decisions, making sure your reporting is transparent is a valuable step for any business.
It helps to paint an honest picture of an organisation, moving beyond traditional financial metrics to showcase a company’s true impact on society, ethics, and the environment.
In many cases, reporting on your progress is a mandatory requirement of an ESG certification, rather than an optional extra.
What is an ESG report, and why does it matter?
An ESG report is the way you gather all of your compliance data. It’s your chance to showcase to consumers and investors that you’re meeting the pledges you put in place for sustainability and environmental efforts.
When you create your ESG report, you’ll use a specific framework to structure your data. The most common frameworks for these reports are the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). Depending on the framework you choose, this will determine what you need to report and how it should be presented.
But why do these reports actually matter? Being able to back your claims up with physical evidence helps with the following:
- Regulatory compliance – New ESG regulations, like the EU Corporate Sustainability Reporting Directive (CSRD), are making disclosures essential for businesses across different sectors.
- Investor demand – Investors actively use these reports to identify risks and align their investments with sustainable, long-term value.
- Transparency and trust – Publishing your data helps prevent “greenwashing” accusations by proving that any sustainability claims are based on facts.
- Reputation and performance – Companies that effectively manage their ESG reporting can build better relationships with customers, improve employee retention, and enhance their brand image.
What are the ESG reporting requirements in the UK?
If your business holds an ESG certification, you’ll need to follow a few specific reporting rules to keep everything in check.
We know that navigating the legal jargon can feel a bit like reading another language, so we’ve broken down the main ESG reporting requirements UK businesses need to know about in plain English:
Companies Act 2006
The Companies Act 2006 applies to all UK businesses. If you run a medium (50-250 employees) or large company (250+ employees), you need to outline the main risks your business faces in your annual directors’ report.
This includes environmental and social risks if they heavily impact your day-to-day work. For example, if you’re in a carbon-heavy industry like construction, engineering, or agriculture, climate change risks are big factors to report on.
Large businesses also need to create a “section 172 statement”. This shows how you consider your stakeholders, the local environment, and your supply chain when making big business decisions. Up to 90% of an organisation’s environmental impact comes from its supply chain, so it’s easy to see why keeping an eye on these relationships is a must.
Streamlined Energy & Carbon Reporting (SECR)
This requirement applies to listed companies, large private companies, and large limited liability partnerships (LLPs).
Under SECR rules, private companies and LLPs have to report their UK energy use if it crosses the 40 MWh mark for the year. You’ll need to provide your greenhouse gas emissions and explain any steps you’ve taken to improve your energy efficiency over the past financial year.
You’ll also have to share the methods you used to calculate these numbers, too. Include these SECR details in your annual directors’ report, and you’re good to go.
Task Force on Climate-related Financial Disclosures (TCFD)
The TCFD recommends that businesses share their climate-related findings across four main areas: governance, strategy, risk management, and the metrics and targets used to manage any climate risks.
If your company is listed under the Financial Conduct Authority (FCA), you’ll need to follow this framework on a “comply or explain” basis. This means you either meet the disclosure requirements or clearly explain why you haven’t.
Climate-related Financial Disclosure Regulations 2022
Rolled out in April 2022, these regulations build on the TCFD recommendations mentioned above. However, they don’t include greenhouse gas emissions, as those are already covered by your SECR reporting.
These requirements are mandatory for:
- Public interest entities
- UK-registered AIM-listed companies with 500+ employees
- UK-registered companies with 500+ employees and a turnover of >£500m
- Traded or banking LLPs that fit the same size criteria
You have to include these details in the sustainability section of your strategic report. If you’re an LLP and don’t need to prepare a strategic report, just add the details to your Energy and Carbon Report instead.
The Corporate Sustainability Reporting Directive (CSRD)
While this set of requirements mostly affects EU companies right now, its reach is growing fast. If your business has a lot of EU activity, like a major branch in an EU country or over €150 million in EU turnover, these rules are expected to apply to you. Check the latest CSRD timeline for when this takes effect for UK businesses with EU operations.
The CSRD focuses heavily on data and asks for a “double materiality approach”. In simple terms, this means you need to report on how sustainability issues affect your business financially, and how your business practices impact the people and environment around you.
Social disclosures
Focusing on the ‘Social’ aspect of ESG-related disclosures, modern slavery statements and gender pay gap reports are also essential for many companies.
The Modern Slavery Act 2015 requires businesses supplying goods or services with a turnover of £36 million or more to provide a modern slavery statement. This should focus on steps to deal with the risks of slavery in the business and supply chain.
Additionally, the Equality Act 2010 requires employers with over 250 employees in a year to calculate and publish average gender pay gap results annually.
How to set realistic ESG goals
If you want to make a real impact and build a more sustainable business, setting clear, achievable ESG goals is a great place to start. Without them, you’ll be left reaching for targets that are always out of your grasp.
Here’s a simple way to get those goals in place:
- Identify key ESG issues
Carry out an assessment to identify the most significant ESG issues for your industry and stakeholders. Engage with employees, customers, investors, and local communities to understand their priorities. Focus on issues that have the greatest impact on your business, like carbon emissions, labour practices, or data security.
- Establish SMART goals
Make sure your goals are Specific, Measurable, Achievable, Relevant, and Time-bound (SMART). Instead of just saying you plan to “reduce carbon emissions”, aim for “reduce carbon emissions by 20% by 2028”.
- Align with industry standards and frameworks
Use established frameworks like the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD) to guide your goal-setting. You should also align your goals with any relevant ISO Standards, like ISO 14001 for environmental management.
- Set baseline measurements
Establish baseline data to track your progress over time. This involves collecting and analysing current performance metrics related to your identified ESG issues. Use this data to set realistic targets and monitor improvements.
- Prioritise and phase goals
Prioritise your ESG goals based on their impact and feasibility. Develop a phased approach to implementation, focusing on quick wins and long-term objectives.
- Integrate goals into your business strategy
Embed ESG goals into your overall business strategy and operational plans. Build ESG into everyday decision-making across every part of your business.
- Communicate and engage
Communicate your ESG goals to stakeholders, including employees, investors, and customers. Engage with them to gather feedback and ensure alignment.
- Regularly review and update
Regularly review your progress and update your goals as needed. Adapt to changing regulations, industry trends, and stakeholder expectations.
How to achieve your ESG goals
Once you’ve set your ESG goals, it’s time to put a plan in place to make sure you hit them. Here’s how you can take practical steps across the three key areas to make real progress.
1. Environmental: Reducing your carbon footprint
Sustainability should sit comfortably at the core of your business operations. Here are some simple ways to make it happen:
- Improve energy efficiency – Look at switching to renewable energy sources, like solar or wind, and upgrade your facilities to reduce energy consumption.
- Strengthen waste management – Introduce or enhance recycling programmes, reduce single-use plastics, and minimise overall waste production across your business.
- Choose sustainable sources – Partner with eco-friendly suppliers and choose sustainable raw materials, like FSC-certified wood, recycled plastics, or organic cotton.
- Offset unavoidable emissions – Invest in carbon offset programs to balance emissions and contribute to environmental initiatives.
Taking these steps reduces your environmental impact, lowers operating costs, improves brand reputation, and helps future-proof your business.
2. Social: Building a positive workplace and community impact
The social part of ESG focuses on people, employees, customers, and the wider community. Here are some key ways to strengthen this area:
- Prioritise employee wellbeing – Offer mental health support, flexible working options, and strong Health & Safety measures.
- Promote diversity and inclusion – Make sure to have fair hiring practices and create an inclusive workplace culture where everyone feels valued and supported.
- Guarantee fair wages and ethical labour practices – Meet or exceed industry wage standards and make sure workers are treated ethically across your supply chain.
- Engage with the community – Support local charities, encourage employee volunteering, and give back to the communities in which you operate.
A strong social strategy helps improve employee satisfaction, customer trust, and brand loyalty.
3. Governance: Ensuring ethical and transparent business practices
Governance is about how you run your business. It involves leading with accountability, making sure any and all decisions are made ethically, transparently, and in line with legal requirements.
Here’s how you can strengthen governance across your organisation:
- Implement transparent reporting – Regularly publish reports outlining your progress and key initiatives.
- Adopt ethical business practices – Establish clear policies to prevent corruption, bribery, and other unethical behaviours.
- Strengthen cyber security and data protection – Safeguard customer and business information by adopting robust data protection practices. You might want to think about implementing Standards like ISO 27001 to demonstrate your commitment to information security.
- Encourage strong leadership and accountability – Make sure your company leadership is committed to ESG principles and sets measurable targets.
By embedding strong governance practices, your business can maintain trust with stakeholders, investors, and customers while reducing legal and reputational risks.
How ISO Standards can strengthen your ESG policy
ISO Standards provide a helpful structure for businesses looking to improve their ESG performance.
By implementing the right certifications, you can strengthen your sustainability efforts, support employee wellbeing, and embed better leadership practices — all while building trust with customers and investors.
Here’s a snapshot of the key ISO Standards that can help your business:
- ISO 14001 – Strengthening environmental responsibility
ISO 14001 focuses on environmental management, helping you reduce waste and energy consumption. It improves environmental regulation compliance and lets you set measurable sustainability targets and track progress. Learn more about what ISO 14001 is here.
- ISO 45001 – Prioritising employee Health & Safety
ISO 45001 supports the social aspect of ESG by maintaining a safe and healthy workplace. It helps you identify and reduce hazards, improve employee wellbeing, and reduce the risk of accidents and costly disruptions. A strong Health & Safety framework protects employees and boosts your reputation. Find out more with our ultimate guide to ISO 45001.
- ISO 27001 – Strengthening governance through data protection
ISO 27001 sets the benchmark for information security management. This certification helps you protect sensitive data from cyber threats and comply with data protection laws. With 4 in 10 businesses experiencing a cyber attack in 2025, having a secure system in place is vital. Read our guide to ISO 27001 to learn more.
How to report your business’s ESG compliance
Reporting your business’s ESG compliance involves a structured approach to measuring, managing, and presenting data on your corporate governance and your impact on the environment and society.
Here’re the key steps to report your compliance successfully:
- Choose a reporting framework – You might use GRI (Global Reporting Initiative) for broad impact, SASB (Sustainability Accounting Standards Board) for financial materiality, TCFD for climate-related risks, or ISSB for global standards. Do your research to find which framework best suits your business model and ESG goals.
- Collect and manage your data – Gather data from departments across your business, including HR, operations, and finance. We recommend using data management software to keep everything organised during this process.
- Draft the report – Create a thorough report that accurately covers your business’s environmental impact, social metrics, and governance procedures. This report needs a clear, easy-to-understand methodology.
- Keep things transparent and accurate – Avoid “greenwashing” by backing your claims up with real-world data, and don’t forget to include external, third-party validation to increase trust with consumers and stakeholders.
- Communicate results – Publish the report on your company website and engage with investors and regulatory bodies to discuss your progress.
Simplify your ESG reporting with Be Certified
If managing ESG risk feels overwhelming, you’re not alone. Many businesses struggle to navigate reporting requirements and find ways to save money while standing out from the competition.
Our ESG Essentials platform offers a user-friendly solution designed to:
- Support your ISO certification journey by providing management software that helps you stay compliant and organise your documentation.
- Help you identify and prioritise ESG risks specific to your business.
- Simplify ongoing monitoring and reporting with digital tools.
- Guide you through implementing best practices with clear, actionable steps.
Whether you’re a small business or a larger enterprise, our platform helps you turn ESG risk management from a challenge into a strength.
Get started here and learn more about how we can support your ESG journey.
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Kyle simplifies complex technical standards into practical, platform-based guidance, empowering organisations to achieve and maintain ISO certification with confidence
