UK businesses need tax incentives to support sustainability reporting standards and hit net zero targets, according to the Institute of Chartered Accountants of Scotland (ICAS).
In a survey of 581 business leaders across the UK, the ICAS found that around half (49%) of respondents believed that Government grants and tax breaks would help them prioritise sustainable reporting.
More than a third of businesses (36%) wanted the Government to introduce mandatory reporting standards on sustainability to help businesses measure their impact on the environment.
The survey also highlighted a need for more training on sustainability practices, with 42% of respondents calling for further tax incentives to help businesses develop skills and "bolster talent".
According to Bruce J Cartwright, CEO of ICAS, a lack of skills and short-term pressures from investors means the UK is at risk of falling behind other countries in implementing environmental, social and governance policies. He continued:
"The research shows clearly that UK businesses need the support of policymakers to ensure that sustainability reporting is prioritised.
"Sustainability reporting needs to be on par with the level of detail and scrutiny given to financial reporting. But without a mandate from the Government, it is hard to see how this will happen."
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