New Sustainability Reporting Hub will reduce administrative burden on private capital firms and portfolio companies
UK Private Capital has launched a new Sustainability Reporting Hub to help private capital firms and their portfolio companies navigate complex reporting requirements, which have increased in recent years as a result of regulatory developments and increasing institutional investor expectations.
The Hub maps out existing resources to help firms at every stage of the investment process by clarifying the role, purpose and interaction of existing sustainability frameworks and reporting templates used by LPs, GPs and portfolio companies.
It is a response to rising demands on sustainability reporting resulting from rapidly evolving sustainability policy and regulation in both the UK and internationally. In the future, the UK’s adoption of the International Sustainability Standards Board (ISSB) IFRS S1 and S2 sustainability reporting standards, alongside the Mansion House reforms, is expected to drive greater demand for high quality sustainability data.
The Hub helps firms and companies by improving understanding of existing requirements and expectations, reducing uncertainty and enabling earlier, more structured data collection. This move towards standardisation and harmonisation addresses feedback from LPs, GPs and portfolio companies which highlighted inconsistencies around what data is required, at which investment stage it is required and how it should be reported.
UK Private Capital will review and update the Hub annually to reflect regulatory developments, market practice and user feedback.
“Sustainability reporting requirements for UK businesses are complex to navigate, placing a significant burden on firms. Our new Sustainability Reporting Hub addresses this problem directly, promoting a higher quality reporting culture and reducing administrative load on firms.
“Our goal is not to encourage compliance for compliance’s sake but instead promote reporting that informs decision making and enables meaningful change.”
“This tool has been designed to help demystify reporting for firms of all sizes across the Private Capital landscape. In an ever-evolving, and at times confusing, regulatory landscape the hub provides clarity and guidance to enable firms to focus on what is material to them at their stage of growth and development.
“My hope is that ultimately this tool enables more firms to embed sustainability at the core of their operations, enabling them to mitigate risks and maximise opportunities; whilst also ensuring that the private capital industry continues to be a force for positive change in this strategically important space.”
“For VC fund managers and early-stage companies alike, navigating the evolving sustainability landscape can be a daunting task. The UK Private Capital Sustainability Reporting Hub helps dispel some of the myths by offering clear and practical framework, moving beyond theory to offer actionable guidance.
“By equipping both GPs and their investment teams with a common understanding and language, we believe that this resource will not only help build more resilient, valuable companies but also streamline crucial sustainability-related communication throughout the entire investment chain.”
Notes to Editors:
For further information, please contact:
UK Private Capital Press Office
Email: [email protected]
Background:
About UK Private Capital
UK Private Capital is the industry body and public policy advocate for the private equity (PE), venture capital (VC) and private credit ecosystem in the UK. With a membership of 600 firms, we represent UK-based private capital firms, as well as their professional advisers and a large base of UK and global investors. The private equity, venture capital and private credit industry has a vital role to play in driving national and regional growth. Currently over 13,000 companies, employing more than 2.5 million people, are backed by private capital investment in the UK.
