ESG Reporting and the FRC: Elevating Assurance Standards

The Financial Reporting Council (FRC) has unequivocally signalled that Environmental, Social, and Governance (ESG) reporting must achieve a level of rigour comparable to traditional financial reporting. Greenwashing is subject to intense regulatory scrutiny.

Integration of Financial and Non-Financial Data

UK boards must ensure a seamless integration between their narrative ESG disclosures and the financial statements. Disconnects—such as ambitious Net Zero commitments lacking corresponding financial provisions or impairment assessments—are prime targets for FRC challenge.

The Demand for Independent Assurance

As stakeholder reliance on ESG metrics intensifies, so does the expectation for independent, third-party assurance. Moving beyond basic compliance, comprehensive assurance over ESG data streams mitigates reputational risk and fortifies investor confidence.

Building credible sustainability reporting

As UK sustainability reporting expectations mature under the FRC and the move toward the new UK Sustainability Reporting Standards, the emphasis is shifting from narrative to evidence. Climate-related disclosures aligned to TCFD principles, and the data behind them, are increasingly expected to withstand the same scrutiny as the financial statements.

Companies that invest in reliable data, clear governance and a defensible methodology — rather than polished prose — are best placed for this transition. Credible sustainability reporting is becoming a condition of investor confidence, and greenwashing risk makes substance, not presentation, the thing that matters.

DeccanBridge UK’s assurance practice collaborates with corporate leaders to design, implement, and audit robust ESG reporting frameworks compliant with the highest UK standards.