Frequently Asked Questions

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Is ESG management required by law?

ESG reporting and attaining a certain standard of performance have mostly been voluntary to date however an increasing number of regulators are moving towards mandated reporting and enforcing a minimum standard of performance. The KEY ESG software allows your organisation to be ahead of the curve and ensures that your organisation is not taken by surprise when new regulations come into force.

The following examples illustrate that regulation is in place, or expected to come into place, across each of the three dimensions: Environment, Social and Governance.

  1. The UK announced TCFD-aligned mandatory climate-related disclosures to be in place as early as 2023.
  2. The EU announced legislation of human rights due diligence by 2021 for all EU companies.
  3. The UK currently already requires gender pay gap reporting for all UK firms with more than 250 employees and other countries are expected to follow suit.

These are only a few examples and the trend is definitely moving towards increasingly strict regulation on ESG metrics across the globe.

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