Strategic Focus: Understanding ESG And Sustainability Regulations In The UK

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Executive Summary

Sustainability is an important political and cultural topic in the UK. The country is increasingly exposed to sustainability pressures, such as biodiversity loss, natural resource scarcity and climate change. However, the green transition also has the potential to drive employment and economic growth across the country. Accordingly, the UK has a mature regulatory environment for sustainability, notably becoming the first major economy to enshrine a 2050 net zero emissions target in law. Since leaving the EU in 2020, the UK has introduced new policies and regulations in areas such as corporate sustainability reporting, sustainable finance, deforestation, carbon tariffs and sustainable agriculture. This report provides executives with an overview of recent shifts in the UK’s sustainability landscape and the actions they can take to best prepare for these changes. 

Table of contents

The UK has strengthened its commitment to sustainability over the past decade
The UK has set ambitious sustainability targets, which require a cohesive strategy
Regulations will be crucial to the UK’s ability to achieve its sustainability commitments
To ensure future readiness, British businesses should start preparing now

Table of figures

Figure 1. UK key sustainability commitments, policies and regulations 
Figure 2. Net UK territorial GHG emissions by sector (2023)
Figure 3. Role of UK industry in advancing a sustainable transition
Figure 4. UK ESG and sustainability policies and regulations

About the authors

Lily Turnbull

Senior Analyst
Lily is a Senior Analyst in the Verdantix ESG & Sustainability practice. Her current research agenda focuses on ESG and sustainability services, ESG assurance, and sustainable finance. Lily joined Verdantix in 2022 and has previous experience in social impact research and ESG software development. She holds an MSc in Women, Peace & Security from the London School of Economics and Political Science and a BA in Theology & Religion from the University of Bristol.

Kim Knickle

Research Director, ESG & Sustainability
Kimberly Knickle is Research Director of the ESG & Sustainability practice at Verdantix. Her research areas encompass ESG regulations and reporting, ESG risk, supply chain sustainability, circular economy, social impact, and sustainable finance. Kim has worked for more than 20 years in the IT industry, providing research and analysis to help companies invest wisely in new technologies. Before joining the analyst industry, she held various roles in IT services, engineering and product safety testing, beginning her career at Underwriters Laboratories, Inc. Kim holds an MBA from Boston University and a BS in Electrical Engineering from Cornell.

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