New Company Guide Empowers UK Company Directors to Consider Sustainability to Meet the True and Fair Legal Requirement

The consequences of climate change are impossible to ignore, and the significant role that businesses play in driving it is now widely accepted. Company directors may also be aware of the increasing requirements for businesses to report on their contribution to climate
change, as well as the related risks that businesses face. Yet, the relevance of these issues for ensuring that financial statements “give a true and fair view” may not be fully appreciated. This guide aims to set out the available options for responding to these challenges with the urgency that is needed.The True & Fair Project has released a new guide to assist UK company directors who recognise the importance of incorporating sustainability-related information into their financial statements to ensure a true and fair view.

True and Fair, February 2025

The True & Fair Project has released a new guide to assist UK company directors who recognise the importance of incorporating sustainability-related information into their financial statements to ensure a true and fair view.

Titled Are Your Financial Statements True and Fair?, the guide reinforces directors’ legal responsibility to consider sustainability data when preparing financial reports. It provides practical steps to aid compliance, specifically addressing the challenges posed by climate change and the transition to a low-carbon economy.

An initiative hosted by Social Value International (SVI), the True & Fair Project published this guide to help companies, investors, and accountants understand how to integrate sustainability considerations into financial reporting. It emphasises the need to account for often-overlooked costs – such as carbon emissions, water usage, and unpaid labor – that ultimately impact society.

In 2024, the Project commissioned a legal opinion from George Bompass KC, confirming that directors have a legal duty to assess whether sustainability issues should be reflected in financial statements for an accurate representation of the company’s position. As a follow-up, this guide supports directors who have determined that sustainability-related information is necessary and are actively working to incorporate it into their financial statements.