Government urged to introduce mandatory corporate reporting on social impact
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Campaigners have called on ministers to introduce mandatory corporate reporting on social issues ahead of the King’s Speech.
ShareAction, which campaigns for responsible investment, urged the Government to put forward legislation that would require companies to share information on their social impact as well as the risk this poses to their business.
It comes as the Government is expected to implement its delayed Sustainability Disclosure Requirements (SDR) regime next year, which will require firms to share their environmental impact.
To boost public health we’re calling on the Government to include mandatory social and health reporting in its new policy agenda
The regime aims to boost accountability and climate ambition as well as give shareholders as much information as possible so they can make decisions on impact as well as profit.
But ShareAction said on Monday that the Government should ensure the SDR includes health and other social factors such as air pollution and unhealthy food as well as environmental impacts.
The organisation is calling for the measures to be outlined in the King’s Speech at the State Opening of Parliament on Tuesday.
Fergus Moffatt, head of UK policy at ShareAction, said: “Companies contribute to many causes of poor health in this country.
“Ill health harms the wellbeing of communities, creates a drag on our economy and increases pressure on health services.
“Well-designed policy is key to unlock the potential of businesses and their investors to have a more positive impact and help shape fairer, healthier societies.
“To boost public health we’re calling on the Government to include mandatory social and health reporting in its new policy agenda.
“This greater transparency would drive up accountability and ambition, giving shareholders the information they need to ensure the companies they invest in are having a positive impact on people.”
Currently, companies and financial institutions will have to report on environmental impacts under the SDR framework published by the UK’s Taskforce on Climate-related Financial Disclosures (TCFD).
The SDR regime was withdrawn from the Queen’s Speech last year with ShareAction calling it a missed opportunity to support the UK’s climate ambitions by streamlining reporting around environmental impact.
PA has contacted the Department for Business and Trade for comment.
