{"id":173832,"date":"2022-08-08T05:58:43","date_gmt":"2022-08-08T04:58:43","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=173832"},"modified":"2025-07-02T00:40:54","modified_gmt":"2025-07-01T23:40:54","slug":"environmental-disclosure-obligations","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/corporations\/environmental-disclosure-obligations\/","title":{"rendered":"What Environmental Disclosure Obligations Does My Company Owe in England?"},"content":{"rendered":"<p><span style=\"font-weight: 400\">The business world is increasingly prioritising environmental, social, and governance issues (ESG). The law in England is also taking steps to formalise certain requirements and obligations related to ESG that certain private companies must comply with presently and in the future. Notably, this is a rapidly moving area of the law, and company directors are responsible for ensuring their company complies with the developments. This article explores whether your company must comply with certain climate-related disclosure laws and your environmental disclosure obligations.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Environmental Disclosure Obligations<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Currently, only large companies in the country have legal obligations to make certain environmental disclosures. However, this will likely change as the laws related to corporate governance disclosures evolve.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Your business may benefit from implementing internal policies that resemble the legal obligations the law places on large companies. ESG issues, especially those related to the environment, are more than just talking points. The extent to which your company impacts the environment can have material effects on your ability to grow, such as by onboarding new customers and obtaining bank loans.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Environmental Issues and Company Law\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400\">We can divide environmental laws which affect private companies into two categories:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">environmental regulations, which tell companies which actions they can and cannot take based on their impact on the environment; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">environmental disclosure laws, which impose obligations on companies to disclose their impact on the environment.\u00a0<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400\">Environmental regulations include laws forbidding your company from dumping its waste into the river. On the other hand, a law requiring you to disclose your company\u2019s carbon emissions in your annual report is an example of an environmental disclosure law.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Determining if environmental regulations apply to your company depends on the kind of business your company runs. Conversely, environmental disclosure laws apply to all companies of a sufficient size, regardless of their industry.\u00a0<\/span><\/p>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">This article primarily focuses on environmental disclosure laws.<\/span><\/p>\n<\/div>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will 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The reason is that key stakeholders such as trade suppliers and lenders can understand a company\u2019s finances and determine if they want to do business with them. In other words, the public can inspect a company\u2019s accounts and determine the company\u2019s profitability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Notably, the scope of corporate governance disclosures is expanding to more than just an account of a company\u2019s profits. For example, a large element of corporate governance disclosures is the requirement that companies publish an evaluation of how their activities impact the environment.\u00a0<\/span><\/p>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">You should be aware that the law may require you to disclose other issues, including your company&#8217;s steps to <\/span><a href=\"https:\/\/legalvision.co.uk\/employment\/benefits-diverse-workforce\/\"><span style=\"font-weight: 400\">improve diversity<\/span><\/a><span style=\"font-weight: 400\"> or address modern slavery.\u00a0<\/span><\/p>\n<\/div>\n<p><span style=\"font-weight: 400\">You should include these disclosures in your company\u2019s strategic report, which forms part of its annual report. Others may refer to the strategic report as \u201cnon-financial disclosures\u201d or \u201cnarrative reporting\u201d.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Company Directors\u2019 Responsibilities\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400\">As a general rule of company law, <\/span><a href=\"https:\/\/legalvision.co.uk\/corporations\/directors-duties\/\"><span style=\"font-weight: 400\">company directors<\/span><\/a><span style=\"font-weight: 400\"> are responsible for ensuring their company complies with all applicable laws. Therefore, if your company must comply with environmental disclosure laws, as a director, this responsibility falls onto you.<\/span><\/p>\n<p><span style=\"font-weight: 400\">You can face criminal and civil liability if you do not comply with your obligations.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Threshold for Disclosure\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400\">If your company is a private company, you will need to make certain corporate governance disclosures, including those related to its impact on the environment, if:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">your company employs more than 2,000 people; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">your annual turnover (revenue) is \u00a3200m or more, and your balance sheet total is \u00a32bn.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">In practice, this only applies to the largest private companies in the country.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Similarly, if your company qualifies as a small company under company law, you will also be exempt from including a strategic report in your annual report. With few exceptions, a small company is any company with:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a turnover of less than \u00a310.2m;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a balance sheet total of less than \u00a35.1m; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">no more than 50 employees.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">However, your company may still benefit from adhering to the laws obligating large private companies to disclose their impact on the environment.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Disclosure Requirements<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Currently, large companies must disclose the following information in their annual report and on other channels, such as their website:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the process the company\u2019s leadership has taken to evaluate the risk of the business\u2019 operations on the environment;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what those climate risks are;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what the effect of the risks are on the environment;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">how these risks may impact the future financial performance of the company;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">how the effect of these risks are measured;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what steps the business is taking to mitigate these risks; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the person or committee within the company that is responsible for monitoring these risks.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Key Takeaways\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400\">The law is changing to impose additional obligations on large companies to account for their environmental impact. Your environmental disclosure obligations are one area among several corporate governance duties. Most small companies \u2014 those bringing in less than \u00a35.1m a year \u2014 do not have to comply with these corporate governance disclosure requirements. However, even if your company is exempt from the disclosure requirements, there are compelling commercial reasons to develop environmental policies nonetheless.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">If you need help with your business, our experienced <\/span><a href=\"https:\/\/legalvision.co.uk\/business-lawyers-lp\"><span style=\"font-weight: 400\">business lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Visit our<\/span><a href=\"https:\/\/legalvision.co.uk\/membership\"> <span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Frequently Asked Questions\u00a0<\/span><\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1659934330805\"><strong class=\"schema-faq-question\"><strong>Is my company obligated to comply with environmental disclosure laws?<\/strong><\/strong> <p class=\"schema-faq-answer\">Unless your company\u2019s annual turnover exceeds \u00a3200m a year, you are not presently required to disclose your company\u2019s impact on the environment in your annual report or through other channels. However, while there is no legal requirement to do so, your company can still benefit from voluntarily adopting similar disclosure requirements.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1659934340613\"><strong class=\"schema-faq-question\"><strong>What are the environmental disclosure requirements?<\/strong><\/strong> <p class=\"schema-faq-answer\">Large companies must evaluate what risks to the environment their operations might have. They must also explain the evaluation process, and which person or committee is responsible for monitoring the risks.\u00a0<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/173832\" \/>            <input value=\"https:\/\/legalvision.co.uk\/corporations\/environmental-disclosure-obligations\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What Environmental Disclosure Obligations Does My Company Owe in England?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The business world is increasingly prioritising environmental, social, and governance issues (ESG). The law in England is also taking steps to formalise certain requirements and obligations related to ESG that certain private companies must comply with presently and in the future. Notably, this is a rapidly moving area of the law, and company directors are<a href=\"https:\/\/legalvision.co.uk\/corporations\/environmental-disclosure-obligations\/\">Continue reading <span class=\"sr-only\">&#8220;What Environmental Disclosure Obligations Does My Company Owe in England?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13461,"featured_media":524,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"866,172010,172007,1402,2904,985","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[28],"tags":[157,223,930,931,932,933],"class_list":["post-173832","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporations","tag-director-duties","tag-large-business","tag-environmental-disclosure-obligations","tag-environmental-social-governance","tag-esg","tag-disclosure-obligations"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Environmental Disclosure Obligations in England | LegalVision UK<\/title>\n<meta name=\"description\" content=\"Large companies must evaluate and report on the environmental risks of their operations. 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We explore environmental disclosure obligations in England.","breadcrumb":{"@id":"https:\/\/legalvision.co.uk\/corporations\/environmental-disclosure-obligations\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/legalvision.co.uk\/corporations\/environmental-disclosure-obligations\/#faq-question-1659934330805"},{"@id":"https:\/\/legalvision.co.uk\/corporations\/environmental-disclosure-obligations\/#faq-question-1659934340613"}],"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/legalvision.co.uk\/corporations\/environmental-disclosure-obligations\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/legalvision.co.uk\/corporations\/environmental-disclosure-obligations\/#primaryimage","url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230019\/brand-design-00017.jpg","contentUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230019\/brand-design-00017.jpg","width":1600,"height":1067,"caption":"Environmental Compliance Strategies for Corporations\u00a0| LegalVision UK"},{"@type":"BreadcrumbList","@id":"https:\/\/legalvision.co.uk\/corporations\/environmental-disclosure-obligations\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/legalvision.co.uk\/"},{"@type":"ListItem","position":2,"name":"Corporate Articles","item":"https:\/\/legalvision.co.uk\/category\/corporations\/"},{"@type":"ListItem","position":3,"name":"What Environmental Disclosure Obligations Does My Company Owe in England?"}]},{"@type":"WebSite","@id":"https:\/\/legalvision.co.uk\/#website","url":"https:\/\/legalvision.co.uk\/","name":"LegalVision UK","description":"LegalVision is a commercial law firm in the UK with a commitment to innovation","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/legalvision.co.uk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/5a59ade89273f68f939c7cb8cc66e6f1","name":"Kieran Ram","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/image\/","url":"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2024\/04\/Kieran-2349-scaled-e1714435159620-96x96.jpg","contentUrl":"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2024\/04\/Kieran-2349-scaled-e1714435159620-96x96.jpg","caption":"Kieran Ram"},"description":"Kieran is a Trainee Solicitor in LegalVision\u2019s Corporate and Commercial team. He has completed a Law Degree, the Legal Practice Course and a Masters in Sports Law, specialising in Football Law.","url":"https:\/\/legalvision.co.uk\/author\/kieranram\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/corporations\/environmental-disclosure-obligations\/#faq-question-1659934330805","name":"Is my company obligated to comply with environmental disclosure laws?","acceptedAnswer":{"@type":"Answer","text":"Unless your company\u2019s annual turnover exceeds \u00a3200m a year, you are not presently required to disclose your company\u2019s impact on the environment in your annual report or through other channels. However, while there is no legal requirement to do so, your company can still benefit from voluntarily adopting similar disclosure requirements.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/corporations\/environmental-disclosure-obligations\/#faq-question-1659934340613","name":"What are the environmental disclosure requirements?","acceptedAnswer":{"@type":"Answer","text":"Large companies must evaluate what risks to the environment their operations might have. They must also explain the evaluation process, and which person or committee is responsible for monitoring the risks.\u00a0","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/173832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13461"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=173832"}],"version-history":[{"count":4,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/173832\/revisions"}],"predecessor-version":[{"id":174145,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/173832\/revisions\/174145"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/524"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=173832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=173832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=173832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}