Sustainability reporting in the NHS 2023/24 and beyond

There is no doubt environmental sustainability is a key challenge for everyone. The Conference of Parties (COP) 28 included its first ever health day with a declaration on climate and health 1 recognising the urgency of taking action on climate change and emphasising the need to build climate-resilient and low-carbon health systems, to protect the health of both planet and people.

Each of the four nations of the UK has net zero targets; sustainability reporting is therefore a key mechanism to manage progress towards achieving them. In the private sector, sustainability reporting is increasingly important to investors and stock exchanges, while in both the private sector and public sector it is important to support decision-making and accountability.

As a result, sustainability reporting is an area of increased focus across the accountancy profession and is expected to increase in prominence over the coming years.

The current sustainability reporting landscape is complicated, with different government departments responsible for different policies. Sustainability reporting requirements, and the planned timing of implementation, varies across the private sector and public sector, as well as across different parts of the public sector itself.

2023/24 is the first year that public sector bodies will be required to include some of the task force on climate-related financial disclosures (TCFD) in their annual reports. This is the first of three phases that will result in TCFD compliance, as adapted for the public sector, by 2025/26.

The role of the finance function in driving effective sustainability reporting is critical, not only in meeting mandatory requirements but leading the way in driving sustainability reporting and sharing best practice.

The aim of this briefing is to signpost finance directors, sustainability leads, nonexecutive directors and all those interested in the environmental sustainability agenda to guidance and reporting requirements that are, or may become, relevant to the NHS.

The briefing sets out the NHS environmental sustainability commitments and reporting requirements across the United Kingdom, what NHS organisations must report in 2023/24, along with good practice in sustainability reporting for NHS organisations in 2023/24 and beyond. It also looks ahead at future developments, the role of the finance function and how you can get involved in supporting the agenda.