"Under the Conservatives' proposals, mandatory ESG disclosures, including a company's carbon footprint, diversity metrics and social governance data, would be made voluntary once again. ESG rules were initially introduced as a voluntary standard, allowing firms to demonstrate transparency around sustainability, workplace culture and board governance. Over the past decade, however, the measures have evolved into complex mandatory frameworks administered by regulators such as the Financial Conduct Authority (FCA), HMRC, and Companies House."
"Andrew Griffith, the shadow business and trade secretary, said that if the Tories win the next general election, they will "take a chainsaw" to the layers of green and social disclosure rules that have, in his words, "made British businesses less competitive and less agile." "If you care about the competitiveness of the UK, someone has to take a proper chainsaw to the volume of these extra reports. And that someone is going to be us," Griffith said."
The Conservative Party plans to remove mandatory climate and sustainability reporting and limit regulators accused of "going woke" to increase company listings on the London Stock Exchange. The proposal would revert ESG disclosures, including carbon footprints, diversity metrics and social governance data, to voluntary status. ESG rules began as voluntary transparency measures but have become complex mandatory frameworks enforced by bodies such as the FCA, HMRC and Companies House. Government figures cite rising compliance costs of around £202m annually for climate-related financial disclosures plus £100m for energy and carbon reporting. KPMG finds average sustainability reports now average 83 pages.
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