Who Needs to Submit These Reports
As seen in the world map above, ESG reporting has already been made mandatory in the UK since 2016 and in the United States since 2023. Canada and Western Europe (excluding Switzerland and Norway, as these two countries are not part of the EU and have their own version of mandatory reporting) are following suit as ESG reporting will become mandatory as of 2024 and 2025 respectively.
But do all companies in these regions have to submit these reports? The short answer is no. Allow us to explain.
If you are located in the UK:
Only organizations in the United Kingdom who have more than 500 employees, are publicly listed, or those which have over £500 million turnover a year must complete ESG reporting. Companies will often report according to the Task Force on Climate-Related Financial Disclosure (TCFD) or the Streamlined Energy and Carbon Reporting (SECR) depending on company criteria. As of 2023, companies in the UK will also have to adhere to the Sustainability Disclosure Requirements (SDRs).
If you are located in Europe:
Businesses in Europe that are publicly listed, have more than 500 employees, or have over £500 million turnover a year must comply with the Corporate Social Responsibility Directive (CSRD) by 2025.
If you are located in the US:
If you are a business in the state of California which makes more than $1 billion in revenue a year, you must adhere to the Securities and Exchange Commission. The governor of California has also recently signed two new climate disclosure bills which will require large businesses to report specific sustainability metrics. This will soon become mandatory for all publicly listed companies in the United States in 2024.
If you are located in Canada:
Companies in Canada which are federally regulated will have to comply with the Canadian Sustainability Standards Board (CSSB) by 2024.
We know we’ve thrown a lot of different acronyms and information your way but worry not! We want to help ease your mind. Introducing our Sustainability Navigator!
This robust tool, built by our internal experts, helps you understand exactly what ESG-related reports you have to submit depending on your region. Just answer a few questions and boom! You’ll get a list of frameworks you must comply with. In addition to the TCFD, CSRD, SECR, and SEC requirements, you’ll also find voluntary reporting regulations according to the Carbon Disclosure Project (CDP) and the Science Based Targets Initiative (SBTi).