Following the news that UK ministers are delaying plans to force companies to disclose their environmental impact;

Luke Gowland, Associate Analyst in the Thematic Team at GlobalData, a leading data and analytics company, offers his view:

“Environmental, social and governance (ESG) is now being consistently side-lined in favor of tackling short-term issues. While those issues represent a significant challenge for our global economy, we cannot afford to let them get in the way of progress towards a low carbon economy. ESG is always seen as tomorrow’s problem, yet the day we breach the 1.5C target looms. There cannot be another excuse to put ESG on the backburner again.

“ESG has become a political football, but the reality is it is far too important. Having hosted COP26 just a few months ago, the government is starting to backslide on its sustainability commitments. It would be extremely disappointing if a climate catastrophe is required to return the focus of ESG to political agendas, but that’s what it might take.”

Rachel Foster Jones, Associate Analyst in the Thematic Team at GlobalData, adds:

“The UK revelled in becoming the vanguard for Sustainable Disclosure Requirements (SDRs) during COP26, becoming the arena for setting climate-related goals. Yet, this U-turn exemplifies that the UK is holding back on its green transition. The Ukraine war has highlighted our dependence on imported energy and sparked investment in traditional fuel production for short-term energy security. Yet, conversely, it’s clear the government is asleep at the wheel. Instead of seizing an opportunity to double down on renewables and improve our long-term energy security, the government has gone missing on its commitments at the first opportunity, for political expediency.”

Listen to Luke Gowland speak about the impact of the UK government ministers delaying plans to force companies to disclose their environmental impact here in GlobalData’s new podcast, which is available on Youtube and Spotify: