Explainer: Sustainability Disclosure Requirements (SDR)
Who is developing the SDRs?
The FCA is the body responsible for pulling together the legislation, whilst HM Treasury, the Department for Business, Energy & Industrial Strategy (BEIS) and the Department for Work and Pensions are “observers”.
Who does the SDR effect?
Most organisations in the UK that have 500+ employees. Exact boundaries to be confirmed but will likely become larger and larger in years to come. We suggest all businesses that operate in the UK keep an eye on this legislation.
Why is SDR being introduced?
The creation of SDR is all about streamlining sustainability reporting, pulling together disparate UK legislation into one place. More holistically, the driving force is focused around offering clearer labeling for sustainable investment (more below).
When can we expect SDR to come into effect?
As of early 2022 the legislation is in review phase. We expect an update Q4 2022 /Q1 2023.
What will the SRD require
- Companies will have to answer the 11 core TCFD questions.
- Companies will be expected to report Scope 3 emissions, which was previously optional for TCFD.
- SDR goes beyond TCFD by including non-climate ESG questions. (example)
- Businesses need to submit a planned path to net zero emissions.
How is it going to be submitted?
Companies required to produce a “non-financial and sustainability information” (NFSI; formerly NFI) statement will be asked to add their SDR disclosures there.
Companies with no NFSI requirement can insert their disclosures in either their SECR report or their annual strategic report, as suits their situation.
How will this legislation work alongside wider non-UK reporting requirements.
It is recognised that UK companies will also operate outside of the UK and will be required to report against other frameworks such as the EU Sustainable Finance Disclosure Regulation (SFDR). As such the SDR is being designed to follow a similar reporting path to other domestic and international initiatives and frameworks. The exact crossover has yet to be finalised.
How will a company's SDR disclosure be used?
A large driver behind this legislation is to add transparency around the growing ESG investment market in a bid to reduce risk of misleading ESG-related claims. In the future, certain investment products will be required to display a label reflecting their sustainability characteristics. This will complement the entity- and product-level SDR disclosures.
How Spherics can help a business respond to the SDRs
Spherics can help businesses complete the core TCFD questions, uniquely specialising on those related to Scope 3 emissions. At time of writing, Spherics won’t be able to support the non-climate related ESG questions through our software, but our consultant advisors can offer guidance on completing these sections.
Get in touch with us today if you would like to talk to one of our carbon consultants: sales@spherics.io
Contact
References
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Explainer: Sustainability Disclosure Requirements (SDR)
Who is developing the SDRs?
The FCA is the body responsible for pulling together the legislation, whilst HM Treasury, the Department for Business, Energy & Industrial Strategy (BEIS) and the Department for Work and Pensions are “observers”.
Who does the SDR effect?
Most organisations in the UK that have 500+ employees. Exact boundaries to be confirmed but will likely become larger and larger in years to come. We suggest all businesses that operate in the UK keep an eye on this legislation.
Why is SDR being introduced?
The creation of SDR is all about streamlining sustainability reporting, pulling together disparate UK legislation into one place. More holistically, the driving force is focused around offering clearer labeling for sustainable investment (more below).
When can we expect SDR to come into effect?
As of early 2022 the legislation is in review phase. We expect an update Q4 2022 /Q1 2023.
What will the SRD require
- Companies will have to answer the 11 core TCFD questions.
- Companies will be expected to report Scope 3 emissions, which was previously optional for TCFD.
- SDR goes beyond TCFD by including non-climate ESG questions. (example)
- Businesses need to submit a planned path to net zero emissions.
How is it going to be submitted?
Companies required to produce a “non-financial and sustainability information” (NFSI; formerly NFI) statement will be asked to add their SDR disclosures there.
Companies with no NFSI requirement can insert their disclosures in either their SECR report or their annual strategic report, as suits their situation.
How will this legislation work alongside wider non-UK reporting requirements.
It is recognised that UK companies will also operate outside of the UK and will be required to report against other frameworks such as the EU Sustainable Finance Disclosure Regulation (SFDR). As such the SDR is being designed to follow a similar reporting path to other domestic and international initiatives and frameworks. The exact crossover has yet to be finalised.
How will a company's SDR disclosure be used?
A large driver behind this legislation is to add transparency around the growing ESG investment market in a bid to reduce risk of misleading ESG-related claims. In the future, certain investment products will be required to display a label reflecting their sustainability characteristics. This will complement the entity- and product-level SDR disclosures.
How Spherics can help a business respond to the SDRs
Spherics can help businesses complete the core TCFD questions, uniquely specialising on those related to Scope 3 emissions. At time of writing, Spherics won’t be able to support the non-climate related ESG questions through our software, but our consultant advisors can offer guidance on completing these sections.
Get in touch with us today if you would like to talk to one of our carbon consultants: sales@spherics.io
Contact
References
You may also like
.png)
Explainer: Sustainability Disclosure Requirements (SDR)
Who is developing the SDRs?
The FCA is the body responsible for pulling together the legislation, whilst HM Treasury, the Department for Business, Energy & Industrial Strategy (BEIS) and the Department for Work and Pensions are “observers”.
Who does the SDR effect?
Most organisations in the UK that have 500+ employees. Exact boundaries to be confirmed but will likely become larger and larger in years to come. We suggest all businesses that operate in the UK keep an eye on this legislation.
Why is SDR being introduced?
The creation of SDR is all about streamlining sustainability reporting, pulling together disparate UK legislation into one place. More holistically, the driving force is focused around offering clearer labeling for sustainable investment (more below).
When can we expect SDR to come into effect?
As of early 2022 the legislation is in review phase. We expect an update Q4 2022 /Q1 2023.
What will the SRD require
- Companies will have to answer the 11 core TCFD questions.
- Companies will be expected to report Scope 3 emissions, which was previously optional for TCFD.
- SDR goes beyond TCFD by including non-climate ESG questions. (example)
- Businesses need to submit a planned path to net zero emissions.
How is it going to be submitted?
Companies required to produce a “non-financial and sustainability information” (NFSI; formerly NFI) statement will be asked to add their SDR disclosures there.
Companies with no NFSI requirement can insert their disclosures in either their SECR report or their annual strategic report, as suits their situation.
How will this legislation work alongside wider non-UK reporting requirements.
It is recognised that UK companies will also operate outside of the UK and will be required to report against other frameworks such as the EU Sustainable Finance Disclosure Regulation (SFDR). As such the SDR is being designed to follow a similar reporting path to other domestic and international initiatives and frameworks. The exact crossover has yet to be finalised.
How will a company's SDR disclosure be used?
A large driver behind this legislation is to add transparency around the growing ESG investment market in a bid to reduce risk of misleading ESG-related claims. In the future, certain investment products will be required to display a label reflecting their sustainability characteristics. This will complement the entity- and product-level SDR disclosures.
How Spherics can help a business respond to the SDRs
Spherics can help businesses complete the core TCFD questions, uniquely specialising on those related to Scope 3 emissions. At time of writing, Spherics won’t be able to support the non-climate related ESG questions through our software, but our consultant advisors can offer guidance on completing these sections.
Get in touch with us today if you would like to talk to one of our carbon consultants: sales@spherics.io
Explainer: Sustainability Disclosure Requirements (SDR)
Who is developing the SDRs?
The FCA is the body responsible for pulling together the legislation, whilst HM Treasury, the Department for Business, Energy & Industrial Strategy (BEIS) and the Department for Work and Pensions are “observers”.
Who does the SDR effect?
Most organisations in the UK that have 500+ employees. Exact boundaries to be confirmed but will likely become larger and larger in years to come. We suggest all businesses that operate in the UK keep an eye on this legislation.
Why is SDR being introduced?
The creation of SDR is all about streamlining sustainability reporting, pulling together disparate UK legislation into one place. More holistically, the driving force is focused around offering clearer labeling for sustainable investment (more below).
When can we expect SDR to come into effect?
As of early 2022 the legislation is in review phase. We expect an update Q4 2022 /Q1 2023.
What will the SRD require
- Companies will have to answer the 11 core TCFD questions.
- Companies will be expected to report Scope 3 emissions, which was previously optional for TCFD.
- SDR goes beyond TCFD by including non-climate ESG questions. (example)
- Businesses need to submit a planned path to net zero emissions.
How is it going to be submitted?
Companies required to produce a “non-financial and sustainability information” (NFSI; formerly NFI) statement will be asked to add their SDR disclosures there.
Companies with no NFSI requirement can insert their disclosures in either their SECR report or their annual strategic report, as suits their situation.
How will this legislation work alongside wider non-UK reporting requirements.
It is recognised that UK companies will also operate outside of the UK and will be required to report against other frameworks such as the EU Sustainable Finance Disclosure Regulation (SFDR). As such the SDR is being designed to follow a similar reporting path to other domestic and international initiatives and frameworks. The exact crossover has yet to be finalised.
How will a company's SDR disclosure be used?
A large driver behind this legislation is to add transparency around the growing ESG investment market in a bid to reduce risk of misleading ESG-related claims. In the future, certain investment products will be required to display a label reflecting their sustainability characteristics. This will complement the entity- and product-level SDR disclosures.
How Spherics can help a business respond to the SDRs
Spherics can help businesses complete the core TCFD questions, uniquely specialising on those related to Scope 3 emissions. At time of writing, Spherics won’t be able to support the non-climate related ESG questions through our software, but our consultant advisors can offer guidance on completing these sections.
Get in touch with us today if you would like to talk to one of our carbon consultants: sales@spherics.io
Contact
References
You may also like
Just why are so many procurement teams seeking supply chain sustainability software?
Explainer: Sustainability Disclosure Requirements (SDR)
Who is developing the SDRs?
The FCA is the body responsible for pulling together the legislation, whilst HM Treasury, the Department for Business, Energy & Industrial Strategy (BEIS) and the Department for Work and Pensions are “observers”.
Who does the SDR effect?
Most organisations in the UK that have 500+ employees. Exact boundaries to be confirmed but will likely become larger and larger in years to come. We suggest all businesses that operate in the UK keep an eye on this legislation.
Why is SDR being introduced?
The creation of SDR is all about streamlining sustainability reporting, pulling together disparate UK legislation into one place. More holistically, the driving force is focused around offering clearer labeling for sustainable investment (more below).
When can we expect SDR to come into effect?
As of early 2022 the legislation is in review phase. We expect an update Q4 2022 /Q1 2023.
What will the SRD require
- Companies will have to answer the 11 core TCFD questions.
- Companies will be expected to report Scope 3 emissions, which was previously optional for TCFD.
- SDR goes beyond TCFD by including non-climate ESG questions. (example)
- Businesses need to submit a planned path to net zero emissions.
How is it going to be submitted?
Companies required to produce a “non-financial and sustainability information” (NFSI; formerly NFI) statement will be asked to add their SDR disclosures there.
Companies with no NFSI requirement can insert their disclosures in either their SECR report or their annual strategic report, as suits their situation.
How will this legislation work alongside wider non-UK reporting requirements.
It is recognised that UK companies will also operate outside of the UK and will be required to report against other frameworks such as the EU Sustainable Finance Disclosure Regulation (SFDR). As such the SDR is being designed to follow a similar reporting path to other domestic and international initiatives and frameworks. The exact crossover has yet to be finalised.
How will a company's SDR disclosure be used?
A large driver behind this legislation is to add transparency around the growing ESG investment market in a bid to reduce risk of misleading ESG-related claims. In the future, certain investment products will be required to display a label reflecting their sustainability characteristics. This will complement the entity- and product-level SDR disclosures.
How Spherics can help a business respond to the SDRs
Spherics can help businesses complete the core TCFD questions, uniquely specialising on those related to Scope 3 emissions. At time of writing, Spherics won’t be able to support the non-climate related ESG questions through our software, but our consultant advisors can offer guidance on completing these sections.
Get in touch with us today if you would like to talk to one of our carbon consultants: sales@spherics.io
