CFOs and ESG Compliance: Steps to Get SRS Right

Quick takeaway: The UK’s new Sustainability Reporting Standards (SRS) kick in from 2024. For CFOs, this isn’t just another compliance headache – it’s a chance to tighten governance, build trust, and unlock real business value.

What are SRS and why do they matter?

SRS is the UK’s new framework that asks large companies to report their environmental, social, and governance (ESG) impacts. Over 1,300 organisations will be in scope from 2024, with the first reports due in 2025.

It matters because regulators are watching – but so are investors, employees, and customers. Getting this right can strengthen resilience and reputation.

Why CFOs need to lead on this

KPMG reports that nearly 8 in 10 UK firms don’t yet have proper ESG data systems in place. Non-compliance could mean fines of up to £50,000 – but the bigger risk is credibility. CFOs are uniquely placed to bring together finance discipline, data governance, and strategic oversight.

The steps that make SRS implementation work

1. Check where you are today – assess current ESG reporting capabilities.
2. Spot the gaps – identify data you’re missing and who owns it.
3. Bring in the right tech – most finance systems will need ESG-specific modules.
4. Set governance structures – clear ownership, clear accountability.
5. Train your people – finance, operations, and sustainability teams all need the skills.
6. Run practice cycles – test reporting before it becomes mandatory.
7. Keep refining – reporting isn’t one-and-done; build in continuous improvement.

Best practices we’re seeing

– Integrate ESG reporting with finance systems for one version of the truth.

– Assign clear data owners and keep lines of accountability sharp.

– Communicate regularly with stakeholders – don’t wait until year-end.

– Get independent verification to boost credibility.

– Dedicate budget and time to training.

The people impact

ESG is creating new roles and reshaping finance teams. Robert Half reports a 60% rise in ESG-related finance jobs in the past year. CFOs need to:

– Upskill existing finance teams.

– Recruit ESG specialists.

– Create clear career paths for sustainability professionals.

– Build cross-functional teams that combine finance, risk, and sustainability expertise.

Example: Unilever invested £1.2m in ESG reporting systems and trained 200+ finance staff. The result? 30% better data accuracy and reporting cycles cut by 40%.

Challenges to watch for

– Data quality: 73% of UK companies cite this as their main obstacle.

– Resource stretch: new systems and reporting take time.

– Integration headaches: many firms still juggle multiple disconnected systems.

– Stakeholder alignment: without buy-in, reporting accuracy drops.

ROI beyond compliance

Deloitte’s analysis shows ESG reporting can temporarily lift finance workloads by 15–20% in year one. But companies that stick with it often see real business benefits:

– 12% lower energy costs.

– 8% fewer supply chain disruptions.

– Improved risk management and investor confidence.

TL;DR

– UK SRS is mandatory from 2024 for large firms.

– CFOs must integrate ESG reporting into financial systems.

– Success depends on people, processes, and the right tech.

– Early movers reduce compliance risk and gain a competitive edge.