Businesses of All Sizes

This consultation seeks views on exposure draft UK SRS, which are based on IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. 

The government proposes 6 minor amendments to the standards for application in a UK context and will inform future government decisions when it considers whether to require entities to report information using the standards. 

New rules on how workplaces in England sort their recycling and waste have now come into force, ending confusion over what goes where and enabling consistent, more streamlined collections.  

The measures as part of the Government’s Simpler Recycling plans will boost flatlining recycling rates, reduce the amount of waste sent to landfill or for incineration, and deliver cost savings for some businesses, while replacing previous legislation which could have required them to have up to six bins.   

From 31 March 2025, workplaces with 10 or more employees will need to arrange for the collection of the following:   

• dry recyclable materials – including plastic, metal, glass, and paper and card  

• food waste   

• residual (non-recyclable) waste
   

Workplaces will need to separate paper and card from the other dry recyclables unless their waste collector collects them together. 

Source: https://www.gov.uk/government/news/new-rules-simplifying-recycling-for-workplaces-in-england-come-into-force

Organisations who produce or use packaging, or sell packaged goods may be obligated to follow rules to reduce the amount of packaging produced, reduce the amount of packaging going to landfill, and increase the amount of packaging waste that is recycled.  See DEFRA (Department for Environment, Food & Rural Affairs) guidance to check if your organisation qualifies.

Source: Government Guidance

Organisations who produce or use packaging, or sell packaged goods are obligated to follow rules to reduce the amount of packaging produced, reduce the amount of packaging going to landfill, and increase the amount of packaging waste that is recycled.

See DEFRA (Department for Environment, Food & Rural Affairs) guidance to check if your organisation qualifies.

Source: https://www.gov.uk/guidance/packaging-producer-responsibilities#check-if-you-are-an-obligated-packaging-producer

Building on global best practice and leading standards, the Sustainability Disclosure Requirements (SDR) is a framework to facilitate and streamline the flow of robust, decision useful information between corporates, consumers and investors and capital markets disclosing a range of sustainability information regarding governance, strategy, risk management, targets and metrics intended to align with other new developments such as Mandatory Net Zero Transition Plans for UK-listed businesses.

Source: www.gov.uk

The UK Government has announced its plan to introduce a Carbon Border Adjustment Mechanism (CBAM) by 2027 for imported goods. This mechanism aims to impose a charge on specific products, ensuring they face a similar carbon price as those manufactured within the UK. The goal is to create a fair competitive landscape among regions with varying levels of decarbonisation efforts. Initially, this levy will impact imports of iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass, and cement.

In 2023, the Government sought feedback on a carbon pricing mechanism, with strong support from UK manufacturers. They believed that such a policy would safeguard their businesses from being undercut by cheaper goods originating from countries with less rigorous environmental regulations. Further specifics about the mechanism, including the precise range of products covered, will undergo consultation in 2024.

Source: https://www.gov.uk/government/consultations/addressing-carbon-leakage-risk-to-support-decarbonisation/outcome/factsheet-uk-carbon-border-adjustment-mechanism

The Environment Act 2021 mandates a 10% biodiversity net gain on all large domestic, commercial and mixed-use developments. This means that developers will need to deliver (with proof) a minimum uplift of 10% in the amount of biodiversity at the site, relative to its biodiversity prior to their intervention. The requirement was originally to be introduced in October 2023, but the Government recently pushed back implementation until January 2024. The legislation will also apply to small developments from April 2024.

Source: https://www.gov.uk/government/news/biodiversity-net-gain-moves-step-closer-with-timetable-set-out

The Levelling Up and Regeneration Act came into law from October 2023 and introduces changes to the English planning system, including how powers are devolved to local authorities. The aim of the legislation is to speed up the planning system and encourage the building of new homes. Key changes include the replacement of the Environmental Impact Assessment and Strategic Environmental Assessment regime with the Environmental Outcomes Report, which aims to streamline the assessment process. Section 106 payments will also be replaced with a new Infrastructure Levy. The Act gives Local Plans more weight in planning decisions, indicating that there would need to be strong reasons to override a Local Plan. An update to the National Planning Policy Framework (NPPF) will follow before the Act can fully take effect.

Source: https://www.gov.uk/government/news/new-laws-to-speed-up-planning-build-homes-and-level-up

The Environment Act of 2021 mandated that developers must provide evidence that their projects result in a net increase in on-site biodiversity. Effective from 12 February 2024, developers in England will need to achieve a 10% “Biodiversity Net Gain.” In certain instances, this net gain can be achieved through enhancements made in other locations, a process known as biodiversity offsetting. Smaller projects will not be required to demonstrate this until April 2024. Biodiversity net gain refers to making sure that when new developments happen, there’s more wildlife and nature in the area afterwards than before.

Source: https://defraenvironment.blog.gov.uk/2024/01/18/bng-launch-date-confirmed/

The ban on single-use plastic items has come into force in England. The ban covers items such as plates, cutlery and certain types of polystyrene food containers and applies to retailers, food vendors, takeaway outlets and hospitality businesses. The ban does not apply to trays and bowls used as packaging in shelf-ready pre-packaged food items, such as salads, as these will be included in the plans for an Extended Producer Responsibility scheme.

Source: Government announcement

From 2023 it will be mandatory for UK-listed business to publish a transition plan detailing how they will achieve net zero ahead of 2050. Transition plans must include high level targets, near-term milestones, and actionable steps to achieve the targets.

To improve the quality of transition plans, HM Treasury is running a Transition Plan Taskforce to provide companies with guidance on what a best practice transition plan should encompass.

Sources:

Government Guidance