The study polled 581 ICAS members, comprising CEOs, Managing Directors, CFOs, and Financial Directors from across the UK. Its findings highlight an emerging demand for the UK Government to place a greater emphasis on sustainability within the corporate landscape. Notably, 36% of participants are urging for mandated sustainability reporting standards, while 28% support unified standards to ensure compatibility among different reporting frameworks.

There’s a significant sentiment favouring financial incentives from the government to advance sustainability reporting, with 49% of respondents believing that grants and tax incentives would substantively bolster their sustainability reporting efforts. As for the nature of the reports, a 45% majority advocated a double materiality approach. This would entail reporting both environmental and societal impacts for various stakeholders, as well as the financial consequences of sustainability-related matters that influence value creation for investors.

Furthermore, 42% of the respondents expressed the need for government incentives to enhance employees’ sustainability skills and fortify the talent pipeline, pointing to a requirement for concerted efforts in sustainability skill development.

Bruce J Cartwright CA, CEO of ICAS, commented: “The research shows clearly that UK businesses need the support of policy makers to ensure that sustainability reporting is prioritised.

“Short-term investor pressure and a lack of skills and talent to be able to report on sustainability means that the UK is at a real risk of falling behind our international and European counterparts in implementing Environmental, Social and Governance (ESG) policies and addressing climate change.

“There will be an increasing requirement on companies to effectively report on sustainability activities and achievements, so the talent and skills must be in place to do this.

“Sustainability reporting needs to be on par with the level of detail and scrutiny given to financial reporting. But without the mandate from government, it is hard to see how this will happen.”

Looking ahead, the research outlined critical priorities for any incoming UK government, with half of the UK business leaders polled suggesting the government focus on tax incentives or bonuses for companies achieving net-zero targets. In addition, 42% called for business support and incentives to aid companies in introducing sustainability reporting.