The reforms announced in the Chancellor’s maiden speech at Mansion House aim to establish a world-leading sustainable finance framework in the UK and reclaim its position as a climate change leader.

Bruce Cartwright CA, ICAS CEO, said: “Urgent progress is needed to develop a sustainable finance framework and green taxonomy for the UK, so we’re encouraged to see this prioritised in the Chancellor’s Mansion House agenda.

“While we welcome the commitment to consult next year on the UK Sustainability Reporting Standards for voluntary reporting by ‘economically significant companies’, we’d like this to go further.”

Mr Cartwright continued: “For some time, we’ve called for the government to make sustainability reporting mandatory, and to take a holistic approach. This would make sure that businesses properly account for their ESG impacts and put sustainability reporting on a deservedly equal footing to financial reporting.

“Limiting these standards by endorsing the investor-focused reporting model defined by the International Sustainability Standards Board (ISSB) leaves them too narrow in scope.

“We urge the UK government to consider impact materiality alongside the new standards, which will ultimately encourage more comprehensive reporting that better serves the needs of a broader range of stakeholders.

“We look forward to engaging with the government on the development and endorsement of these standards, as well as the wider package of sustainable finance reforms.”