UKSIF report calls for bold ‘evolution’ of sustainability disclosures regime
A UK Sustainable Investment and Finance Association (UKSIF) report has called for a bold ‘evolution’ of the UK’s sustainability disclosures regime for companies and wider assets.
The new paper, titled ‘Unlocking Growth Through Enhanced Sustainability Data’, surveyed 20 UKSIF members with £4.5 trillion in combined global AUM to gauge the investment community’s experience and use of sustainability data.
It found respondents overwhelmingly consider ESG information to be vital for decision-making, with sustainability factors viewed as central to their investment analysis, particularly regarding climate risk and governance. However, they felt the quality of the ESG data that they receive could be improved, with two-thirds rating it “moderate” and none rating it “very high”.
When asked to describe their ‘biggest challenges’ with ESG data, 85% of respondents cited the accuracy of company disclosures, 70% highlighted their difficulty verifying or validating ESG data, and 70% pointed to gaps in ESG data coverage.
These findings show the current state of company sustainability reporting is “fragmented and needs to evolve to help investors navigate the sustainability transition,” the report said.
Lower standards of ESG data could result in material issues, such as funds being “misallocated due to hidden sustainability risks,” it further added.
The report concludes there is a need for “a shift towards mandatory, standardised disclosures aligned with ISSB standards”, coupled with the introduction of climate transition plans. It says these measures could “directly address the data challenges and improve the consistency, completeness, and forward-looking nature of sustainability information.”
As one respondent quoted in the report put it, “ISSB adoption will drive consolidation and relevancy in reporting in the UK and globally. It is especially important for building site-based analysis of physical climate and nature risks”.
Commenting on the report, UKSIF CEO James Alexander said: “This data shows that high-quality sustainability disclosures are increasingly essential for investors. However, despite progress on sustainability reporting in recent years, most of our survey respondents believe ESG data is falling short of the highest standards.
“That’s why a bold step forward in the UK’s sustainability disclosures regime is so important, helping investors take more informed decisions, which can strengthen the country’s global competitiveness.
“The findings of this report support our ongoing call for the adoption of the ISSB disclosure standards as the mandatory UK baseline, alongside the phased introduction of climate transition plans for larger companies.
“If implemented effectively, these reforms have the potential to tackle existing data issues, support companies to disclose in a proportionate manner, and enhance the consistency, completeness and forward-looking value of sustainability information.”
ENDS
Survey background: UKSIF surveyed 20 of its members with a combined AUM of £4.5 trillion in November 2025. Those that took part were as follows: 80% were asset managers, 10% were pension fund/asset owners, and 10% were wealth managers/financial advisers 10%.
The survey primarily asked quantitative questions, covering areas such as the usefulness of a range of ESG metrics, the quality and gaps in current corporate ESG reporting, the challenges of using ESG data, and the improvements investment industry participants would like to see.
Background: UKSIF (UK Sustainable Investment and Finance Association) brings together the UK’s sustainable investment and finance community and supports its members to expand, enhance and promote this key sector. Our more than 300 members, who have £19trn in assets under management (AUM), include investment managers, pension funds, banks, financial advisers, research providers and NGOs, among others.
Our members are active in, and supportive of, efforts to promote the sustainable finance agenda. Together, we work closely with policymakers and others to find new ways to overcome the barriers to the growth of sustainability and deliver progress towards decarbonisation of the economy.