Plans for the UK Sustainability Disclosure Requirements (SDRs) were dropped from a new financial services bill outlined during the Queen’s Speech on Tuesday, according to the Financial Times. The SDRs are intended to introduce environmental disclosure rules for asset owners and managers, listed companies, and investment products in order to reduce greenwashing risk. The SDRs will also include a mandate for UK-based organisations to publish credible climate transition plans that clearly plot a path to net zero CO2 emissions. Despite Ministers’ last-minute decision to omit details on the SDRs, the Treasury noted that it “remained committed to implementing sustainability disclosure requirements and will proceed with the necessary legislation in due course”.
Sustainability Disclosure Requirements were reportedly withdrawn from the #QueensSpeech, indefinitely delaying implementation.
The UK needs strong environmental disclosure regulation; we urge the gov't to implement the SDRs at the earliest possible date: https://t.co/4QoRczaITn pic.twitter.com/8CHvdcIP9H
— CDP (@CDP) May 12, 2022
Pietro Bertazzi, Global Director of Policy Engagement and External Affairs at environmental reporting platform CDP, said: “CDP is disappointed to learn that the UK Government decided to withdraw the SDRs, which were set to strengthen environmental disclosure regulation, from this week’s Queen’s Speech, thus indefinitely delaying their implementation. Regulation isn’t solely about driving action: the SDRs will be critical in providing businesses across the UK with much needed guidance, clarity and confidence in aligning their business with a 1.5°C future. Businesses are asking for this. CDP hopes that the UK Government will take the first opportunity to impose the SDRs and we look forward to supporting them to do so, as we are currently doing through our participation in the Transition Plan Taskforce.”