Sustainability Reporting – Evolution and Retreat – A UK Corporate Governance Perspective

146 Abstract This article examines whether the past decade of corporate sustainability reporting has had an impact on UK corporate governance requirements, specifically on the UK Corporate Governance Code, through an embedding of sustainability responsibilities at board level. In fact, there is little reflection of these matters in the Code primarily, it would seem, because of business resistance based on overstated concerns about possible impacts on directors’ duties and liabilities and freedom to act. Conveniently for business, the political and economic tide has now turned from ‘green’ matters to ‘growth’ and ‘competitiveness’. The result is that the opportunity to enhance corporate governance has been missed and 2026 is likely to see a return to limited, financially material, reporting, concentrated on the largest companies and focused on investor needs. It will be up to investors to hold boards accountable on sustainability matters—if they choose to do so—which remains uncertain.