The Conservative Party has pledged to scrap mandatory climate and sustainability reporting requirements and rein in regulators “with a tendency to go woke” in a dramatic effort to boost the number of companies listing on the London Stock Exchange.
Andrew Griffith, the shadow business and trade secretary, said that if the Tories win the next general election, they will “take a chainsaw” to the layers of green and social disclosure rules that have, in his words, “made British businesses less competitive and less agile.”
“If you care about the competitiveness of the UK, someone has to take a proper chainsaw to the volume of these extra reports. And that someone is going to be us,” Griffith said.
The plans mark one of the most radical proposed rollbacks of corporate regulation in recent years — and signal a sharp shift from the Labour government’s focus on green finance and ESG transparency.
Under the Conservatives’ proposals, mandatory ESG disclosures, including a company’s carbon footprint, diversity metrics and social governance data, would be made voluntary once again.
ESG rules were initially introduced as a voluntary standard, allowing firms to demonstrate transparency around sustainability, workplace culture and board governance. Over the past decade, however, the measures have evolved into complex mandatory frameworks administered by regulators such as the Financial Conduct Authority (FCA), HMRC, and Companies House.
According to government figures, compliance costs have spiralled, with businesses spending around £202 million annually on climate-related financial disclosures, plus an additional £100 million on energy savings and carbon reporting.
A KPMG study found the average sustainability report now runs to 83 pages, up from 70 pages in 2021, with some reports exceeding 200 pages.
“Some of our best firms are hamstrung by having to report against a dense thicket of ESG metrics, to be judged by self-appointed activists or regulators,” Griffith said.
Griffith said the Conservatives would also move to curb the powers of regulators, particularly where ESG requirements are seen as political or subjective.
He argued that excessive reporting and regulation had driven businesses away from London, citing rival financial centres such as New York and Singapore as jurisdictions with fewer disclosure burdens.
“The countries we’re losing listings to don’t have anything like this kind of onerous reporting,” Griffith said. “There’s no point in us being an outlier.”
In the US, Donald Trump’s administration previously scrapped federal ESG reporting mandates, a move that the Conservatives see as a precedent for deregulation in the UK.
The policy forms part of a wider Conservative strategy to revive London’s global competitiveness as a listings destination and signal a more pro-business, low-regulation environment.
Alongside the ESG rollback, Griffith said a future Tory government would also scrap stamp duty on home purchases, reverse Labour’s inheritance tax changes for family businesses, and review regulations that have contributed to so-called “de-banking” — where business or personal accounts are closed due to reputational or ESG-related concerns.
“Our proposals will defend freedom of expression and ensure that businesses can access banking facilities without running the gauntlet of woke middle managers trying to second-guess subjective ESG rules,” he said.
While the Conservatives argue the plans would cut red tape and encourage growth, critics warn that scrapping ESG requirements could damage Britain’s reputation among international investors and sustainability-focused funds.
Large institutional investors — including BlackRock, Aviva, and Legal & General — have said ESG disclosure remains a “core component of modern corporate accountability”, with transparency on environmental and social risk now seen as standard by global markets.
However, Griffith dismissed concerns that deregulation would allow companies to “dodge” climate commitments.
“I don’t think so,” he said. “Companies are still on the hook to shareholders for whatever they say. They will continue to act responsibly without the state micromanaging every report.”
The remarks come amid growing unease in the City about London’s ability to attract large listings, following high-profile defections such as Arm Holdings’ US float last year.
With business investment lagging and the UK’s regulatory environment seen as increasingly complex, the Conservatives are attempting to position themselves as the party of deregulation and growth, contrasting Labour’s emphasis on climate accountability and corporate transparency.
Whether the proposed ESG rollback would materially boost listings remains uncertain. Analysts warn that investor sentiment, market liquidity and geopolitical stability remain far greater influences than disclosure rules alone.
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Tories vow to ‘take a chainsaw’ to ESG rules to boost London listings