Tories pledge to slash green reporting rules to boost UK business growth

The Conservative Party has announced plans to dismantle significant climate change reporting requirements, aiming to boost the number of companies listing on the London Stock Exchange. In an interview, Andrew Griffith, the shadow business and trade secretary, promised to use what he called a “chainsaw” on Environment Social and Governance (ESG) mandatory reporting. Under these proposals, companies would no longer be required to publish extensive data on their carbon footprint or environmental impact.

Griffith argued that the current regulations are damaging the international competitiveness of UK businesses, describing the rules as “red tape” that makes firms less agile and burdens them with additional costs. ESG measures, initially voluntary, have evolved into lengthy and costly compliance exercises, reportedly costing British businesses hundreds of millions of pounds each year. According to KPMG, the average company sustainability report has now grown to eighty three pages, with some reaching over two hundred pages.

Speaking for the Conservative Party, Griffith claimed that many leading firms are encumbered by having to report against a ‘dense thicket’ of ESG metrics, leaving them subject to scrutiny from activists and regulators. He linked these regulatory burdens to broader pledges, including scrapping stamp duty for home purchases and reversing proposed inheritance taxes on family businesses, framing all these moves as necessary to restart UK economic growth.

Government figures show that climate-related disclosures cost companies an estimated two hundred and two million pounds annually, with an added one hundred million spent on energy savings and carbon reporting. The Conservative proposal also claims it would address concerns around ‘de-banking’, where business accounts have reportedly been closed on ESG or reputational risk grounds.

The party insists that its approach would protect freedom of expression and speed up access to banking for companies, by curbing what they term ‘woke’ ESG compliance decisions by middle management. Griffith emphasised that listed companies would still be accountable to shareholders for their statements, while suggesting that the UK risks losing market share to countries with lighter regulations.

He concluded by noting that the party’s ability to repeal ESG obligations stems from its previous promise to repeal the Climate Change Act, which he called an enabler for these latest reforms. The debate over the future of ESG reporting rules looks set to be a defining issue for business and regulation in the run up to the next general election.