Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps his Department is taking to ensure that company directors consider the interests of (a) workers and (b) the environment.

Under section 172(1) of the Companies Act 2006, company directors are required to have regard to the interests of the company’s employees and the impact of the company’s operations on the environment. Since 2019, directors of large companies have been required to report annually on how they have met this duty.

The Government will consult this year on requirements for economically significant companies to report on their sustainability-related risks and opportunities via UK Sustainability Reporting Standards, and on how best to take forward the Government’s manifesto commitment on climate transition plan requirements.