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ESG Policies and Regulations Update February 2024

Published on 01/03/2024 by Acclaro Advisory

The following details framework updates, and their implications, that occurred in February, as well as highlighting some key updates and releases to be aware of in the coming few years. Frameworks such as those explored in this report can help stakeholders understand how an organisation manages risks and opportunities around such sustainability issues. Often used as a communication tool, it can play an important role in demonstrating the sincerity of a company’s actions as well as ensuring good governance.  

Monthly update

February did not see many regulatory or framework updates, rather some undecided news. The CSDDD had multiple delays to EU member state voting, however, Wednesday 28 February saw a failure to secure a qualified majority among member state representatives. Details on the final stance of each member state were not made public, however, the state of play will have to be considered and “will see if it’s possible to address the concerns put forward by member states, in consultation with the European Parliament.”  

In other news, the US Security and Exchange Commission’s proposed climate rule is to be voted on Wednesday 6 March, when it will be decided whether to be adopted, and in what form. The outcome of this will affect what public listed US businesses need to report. Furthermore, those organisations that provide products and services to these listed US companies will also be impacted, through the proposed mandated Scope 3 emissions disclosure requiring supplier engagement for carbon data.  

ISSBISSB is rolling out new and updated resources to support companies in implementing IFRS S1 and IFRS S2 starting in 2024 21 Feb 2024 


International Sustainability Standards Board 

The ISSB is a comprehensive global baseline for high-quality Sustainability Disclosure Standards to meet investor demands for transparent, reliable, sustainability reporting and will contribute to addressing greenwashing.  

The ISSB are continuing to update resources to support companies including: 

  • Update of the SASB Standards, making them more internationally applicable and thereby aiding companies using them to meet IFRS S1 requirements  
  • Educational material released by IFRA Foundation assisting companies in addressing nature and social aspects of climate related risks and opportunities under IFRS S2 
  • Progression on the development of a digital taxonomy, which is planned for release in April, facilitating digital consumption of information aligned with ISSB Standards 

The GRI and IFRS Foundation have also published a new analysis and mapping resource: interoperability considerations for GHG emissions when applying GRI Standards and ISSB Standards. This illustrates the areas of interoperability a company should consider when measuring and disclosing Scope 1, Scope 2 and Scope 3 greenhouse gas emissions in accordance with both GRI 305: Emissions and IFRS S2 Climate-related Disclosures. The requirements in GRI 305 and IFRS S2 demonstrate a high degree of alignment. The alignment means companies that already disclose Scope 1, 2 and 3 GHG emissions using the GRI standards will be well positioned to report information about GHG emissions in accordance with IFRS S2.  

Horizon Scanning

Date expectedFrameworkDescription
April 2024SECThe SEC has set April as the deadline for its climate disclosure rule, after multiple delays 
April 2024ISSBDigital Taxonomy release expected 
May 2024UK SDRAnti-greenwashing rule and guidance comes into force on 31 May
June 2024TCFDFCA ESG Rules: TCFD disclosures relating to Financial Year 2023 to be finalised
June 2024UK SDRFirst elements of the new rules (excluding anti-greenwashing rule) to come into force – at the earliest
July 2024ESRSAnticipated adoption of the second draft of ESRS 
July 2024UK SDSSecretary of State for Business and Trade will consider the endorsement of the IFRS Sustainability Disclosure Standards, to create the UK SDS
July 2024UK SDRFirms can begin to use labels, with accompanying disclosures from 31 July
July 2024TPTTPT’s mandate extended until at least 31 July, in order to support the Transition Finance Market Review
December 2024UK SDRNaming and marketing rules come into force, with accompanying disclosures, from 2 December
2024CSRDDue to supersede NFRD in 2024. Large companies already subject to NFRD must begin reporting on the fiscal year 2024. Drafting of sectoral-ESRS. 
2024CSDDDApplication of CSDDD to certain EU and non-EU companies expected to begin at some stage in 2024 
2024GHG ProtocolExpected to release drafts of revised text 
January 2025CSRDExpected application of CSRD to large EU reporting. Sustainability reporting in 2026 for Financial Year 2025
December 2025UK SDROngoing product-level and entity-level disclosures for firms with AUM>£50bn, from 2 December
2025GHG ProtocolFinal standards and guidance to be released 
2025UK SDSSuite of KPIs will need to responded on from 2025 onwards
January 2026CSRDExpected application of EU CSRD to listed SMEs (may affect a small number of portfolio companies)
December 2026UK SDREntity-level disclosure rules extended to firms with AUM>£5bn, from 2 December
January 2028CSRDExpected application of EU CSRD to non-EU companies, reporting in 2029 for Financial Year 2028


In its Autumn Statement 2022, the UK Government announced a new, long-term commitment to enhance energy efficiency, aiming to drive down costs for households, businesses, and the public sector with the end goal being a 15% reduction in the UK’s final energy consumption from buildings and industry by 2030 compared to 2021 levels. 

This commitment took the form of new government funding worth £6 billion being made available from 2025 to 2028. These funds have recently been earmarked, in a government press statement on December 18, 2023, for various schemes aimed at delivering energy efficiency assistance to businesses and homes throughout the United Kingdom. Some of these schemes are new, while some are existing schemes that have been allocated more funding. 

SchemeAllocationDescriptionYears of funding in the next spending review period
Boiler Upgrade Scheme£1.545bn Replacing fossil fuel heating systems 2025/2026 – 2027/2028
Heat Pump Investment Accelerator £15m Bringing forward investment in the UK heat pump manufacturing supply chain 2025/2026 
New £400m energy efficiency grant £400m For households in England to make changes such as bigger radiators or better insulation 2025/2026 – 2027/2028
New local authority retrofit scheme £500m Supporting low-income and cold homes with measures such as insulation 2025/2026 – 2027/2028 
Social Housing Decarbonisation Fund £1.253bn Supporting social homes to be insulated or retrofitted2025/2026 – 2027/2028 
Green Heat Network Fund£485mHelping homes and buildings access low carbon, affordable heating 2025/2026 – 2027/2028 
Heat Network Efficiency Scheme£45m Improving around 100 existing heat networks2025/2026 – 2027/2028
Public Sector Decarbonisation Scheme £1.17bn Providing grants for public sector bodies to fund heat decarbonisation and energy efficiency measures2025/2026 – 2027/2028
Industrial Energy Transformation Fund £225m Continuing to help businesses transition to a low-carbon future 2025/2026 – 2027/2028 
Industrial Energy Efficiency and decarbonisation support £410m Further details to be announced in due course 2025/2026 – 2027/2028 

Sustainability abbreviations

CSDDD – Corporate Sustainability Due Diligence Directive 

CSRD – Corporate Sustainability Reporting Directive 

ESRS – European Sustainability Reporting Standards 

GHG Protocol – Greenhouse Gas Protocol 

GRI – Global Reporting Initiative  

ISSB – International Sustainability Standards Board 

TCFD – Taskforce for Climate Related Disclosure 

UK SDR – Sustainability Disclosure Requirements  

UK SDS – Sustainability Disclosure Standards 

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