Policy paper

Thematic Review of Sustainability Reporting

This review assesses the effectiveness of sustainability reporting in annual reports, considers wider developments, and sets out recommended improvements

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Thematic Review on Sustainability Reporting

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Details

This thematic review assesses sustainability reporting in central government annual reports and accounts, focusing on the effectiveness, relevance and usability of disclosures. It examines compliance with HM Treasury’s Sustainability Reporting Guidance (SRG), alignment with user needs, and the relationship between the SRG, Greening Government Commitments (GGCs), and developing regulation and international frameworks (e.g., the Task Force on Climate-related Financial Disclosures).

Findings highlight variation in reporting quality and scope, with calls for clearer, more consistent requirements. Stakeholders supported simplifying mandatory reporting, exploring alignment with international standards, tailoring to organisation size, and focusing on material, decision-useful information.

Key challenges include inconsistent reporting boundaries, complex frameworks, and limited comparability. Feedback supports consolidating guidance (where possible), and separating supplementary sustainability information from annual reports.

In response, HM Treasury will decouple the SRG from the GGCs, simplify mandatory requirements, and issue updated, principles-based guidance - in line with the materiality led approach set out in the TCFD Application Guidance. Further engagement with the Financial Reporting Advisory Board and stakeholders will explore a more unified approach going forward.

Updates to this page

Published 8 July 2025

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