Business: Environment Protection and Staff
The question
To ask the Secretary of State for Business and Trade, if he will take steps with Cabinet colleagues to require regulators to help support businesses to meet their fiduciary responsibilities to (a) employees and (b) the environment.
Answered by Justin Madders
Under Section 172 of the Companies Act 2006, directors have a fiduciary duty to have regard in their decision-making to the interests of their employees and the impact of the company’s operations on the environment. Large companies must report annually on how they have fulfilled this duty and the audit and reporting regulator, the Financial Reporting Council, provides best practice guidance on Section 172 reporting.
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