Mark Babington, executive director of regulatory standards at the Financial Reporting Council (FRC), was one of the speakers at the latest IR Magazine ESG Integration Forum – Europe.
During his panel session, he recapped the current ESG regulatory environment and imminent developments and addressed how companies can be more proactive and prepare for future reporting and disclosure requirements.
He also spoke about what companies can do to get ahead of regulatory changes and how the FRC can support firms along the way.
After the session, IR Magazine sat down for a one-to-one chat with Babington for targeted advice on how different scopes of emissions affect small to medium-sized enterprises (SMEs), as well as the challenges that could arise.
Need for standardization
‘I think it shows the need for standardization. If you’re an SME looking to provide services or goods to larger companies and they want you to demonstrate that you meet their ESG obligations, but they ask you to do it in four different ways, it’s not cost-efficient,’ he explained.
‘What we need to see is a greater standardization of how to meet those reporting obligations in a way that businesses can deliver.’
The ISSB has set out an ‘ambitious framework,’ Babington remarked. ‘The first touchpoint is going to be about reporting on climate, but it is certainly going to broaden the international dialogue.
‘I'm also involved in revisions to the accounting profession’s code of ethics to reflect the fact there are different demands arising from the preparation and assurance of ESG information.’
To find out more about the ESG Integration Forum – Europe, please click here.
Watch our additional IR TV Now video with other highlights of key interviews from the event here.