12/10/2026
Last week, when in conversation with an industry stakeholder, they said "ESG is not really a thing anymore is it...?". I replied that I had attended an interesting presentation on finance and sustainability recently, and the usage of the term 'ESG' may be in decline, but financial institutions were very much interested in a companies sustainability status.
UK SRS S1 GENERAL REQUIREMENTS FOR DISCLOSURE OF SUSTAINABILITY-RELATED FINANCIAL INFORMATION. This Standard was released in Feb 2026 by the UK government and will initially become a voluntary reporting requirement in 2027 for in-scope. Yet another example of why all companies should be examining their data and getting prepared for this and other (digital product passports) regulation requirements. Essentially, "the SRS S1 requires an entity to disclose information about all sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s cash flows, its access to finance or cost of capital over the short, medium or long term. For the purposes of this Standard, these risks and opportunities are collectively referred to as ‘sustainability-related risks and opportunities that could reasonably be expected to affect the entity’s prospects’". On the 30th Sept 2026, the Financial Conduct Authority published "finalised rules requiring listed companies to report against UK Sustainability Reporting Standards (UK SRS), on a 'comply or explain' basis....". Their rules "apply a comply-or-explain approach across the UK Sustainability Reporting Standards (UK SRS) framework-(starting Jan 2027), promoting international alignment and comparability while allowing companies to explain how their circumstances affect their reporting."
A clear indication that financial institutions are requiring information on the sustainable impact of a business to allow them to decide whether to fund that business. https://lnkd.in/eepMas59
In addition, HSBC (and other banks?) have a 'Sustainability Improvement Loan'. Their SIL applies a simple variable pricing adjustment based on a third-party ESG rating issued by an HSBC recognised external ratings provider (such as EcoVadis, CDP, or Inrate, subject to market availability). The score is reviewed annually and loan costs may vary depending on sustainability performance.
What clearer message is there that sustainability matters where money is concerned? Sustainability is no longer a 'nice to have' which can be cut if the going gets tough. It is an essential part of a businesses' operations and has moved from marketing to compliance. Get ahead of the game. It doesn't necessarily mean massive changes, but sustainability needs to be a core part of every business decision.
https://www.fca.org.uk/publications/policy-statements/ps26-19-aligning-listed-issuers-sustainability-disclosures-international-standards
We have finalised rules requiring listed companies to report against UK Sustainability Reporting Standards (UK SRS), on a comply or explain basis.