Fund managers urged to ""get ahead"" of ESG reporting changes

Fund managers are being urged to ""get ahead of stringent ESG reporting changes"" by Ocorian's Bovill Newgate - a specialist financial services regulatory consultancy. As early as July 31, 2025, companies are required to evidence ESG reporting data. While 90% of firms polled by the consultancy said they recognise ESG as a crucial focus area - less than one-third of these firms are currently equipped to handle ""any substantial ESG reporting data"", the consultancy said. With new ESG reporting rules coming under the UK's sustainability disclosure requirements (SDR) and the EU's sustainable finance disclosure regulation (SFDR), critical changes will impact fund and asset managers that ""demand immediate attention"". ""Under SFDR, fund and asset managers should already have robust reporting in place, given their obligations,"" said Bovill Newgate funds practice lead Abi Reilly. However, it has found sourcing the data for detailed disclosures has ""remained a significant challenge"", Reilly added. She continued: ""With SDR, it's understandable if firms are just beginning now. However, with reporting deadlines only a year away on 31 July, they must not underestimate the time and resources needed to prepare the necessary reports."" Obtaining data has been the most significant challenge. The consultancy advised fund and asset managers to ""engage with their portfolio companies now and ask the relevant questions"". For example, looking at where a fund has a focus on sustainability and whether the company measures its environmental impact. In addition, firms can look at whether a fund has social equality merits and whether the company has policies that incorporate diversity and inclusion - all of which will be required for the new ESG reporting rules. The underlying factor is that data is key and companies will need to ensure it is gathered efficiently and effectively to meet the new reporting requirements. Earlier in July, Ocorian research found that North American fund managers believe the regulatory environment is the ""biggest obstacle"" to successful fundraising in Europe, with European ESG regulation in particular being a deterrent.