In this stocktake, we summarise the divergence between UK and EU financial sustainability reporting regulations since Brexit. While both jurisdictions have introduced reporting and labelling requirements to combat greenwashing and empower sustainable investment choices, companies operating across borders face confusion and duplication, and explicit inclusion of nature related impacts lags behind.

As the UK and EU pursue a reset in their relationship, there’s an opportunity to better align sustainability reporting standards. However, current reforms are slow and potentially moving in the wrong direction, with emphasis on reducing business burdens rather than strengthening environmental protections. Here, we outline our recommendations to the government to make reporting more efficient while ensuring the appropriate environmental impacts are accounted for.