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ESG Compliance Risks Are Rising

  • Publish Date: Posted about 3 hours ago
  • Author:by Emma

Do You Have the Right People in Place?

A recent edie report highlights a sharp rise in ESG compliance risks since 2024, with organisations experiencing increasing pressure around reporting cycles. As regulatory requirements tighten and disclosure frameworks expand, ESG compliance is no longer just a reporting exercise - it’s a business-critical risk area. 

For many organisations, the challenge isn’t a lack of intent. It’s a lack of capacity, capability and specialist expertise.

 

Regulation Is Moving Faster Than Teams Can Adapt

From evolving UK sustainability disclosure requirements to global standards reshaping climate and social reporting, ESG regulation is becoming more detailed, technical and enforceable. As a result, risks are clustering around reporting deadlines, where data gaps, governance weaknesses and resource constraints are exposed.

In practice, we’re hearing that organisations struggle with:

·      Inconsistent or unauditable ESG data

·      Limited in-house regulatory expertise

·      Overstretched sustainability and compliance teams

·      Unclear ownership between ESG, risk, finance and operations 

The consequence? Increased compliance exposure, reputational risk and pressure from investors and stakeholders.

 

ESG Risk Is Now a Talent Issue

What this report makes clear is that ESG compliance risk is no longer purely a policy challenge - it’s a people challenge.

Organisations that are navigating this shift successfully tend to have:

·      Dedicated ESG and sustainability leaders

·      Strong governance and risk professionals

·      Experienced environmental and energy specialists

·      Health & Safety teams aligned with broader ESG strategy

Without the right expertise, even the best strategy can fall short.

 

Building Resilience Through Specialist Recruitment

As ESG continues to mature from voluntary reporting to regulated disclosure, businesses need individuals who understand both the technical detail and the commercial implications.

 This is where specialist recruitment becomes critical.

At Allen & York, we’re seeing growing demand across Environment, Energy, Sustainability & ESG, and Health & Safety roles - particularly where organisations need professionals who can strengthen governance, improve reporting integrity and embed compliance into operational practice.

The market is competitive. The strongest candidates are often passive and highly selective, especially those with experience across complex regulatory frameworks. Proactive hiring - rather than reactive recruitment close to reporting deadlines - is becoming a clear differentiator.

 

Looking Ahead

The rise in ESG compliance risk isn’t a temporary spike; it reflects a structural shift in how organisations are regulated and assessed.

The question isn’t whether ESG risk will increase - it’s whether your team is equipped to manage it. 

If compliance exposure is growing, now may be the time to review whether you have the right expertise in place to protect your organisation and strengthen long-term resilience.

If you’re looking to hire, get in touch today, we can help. Drop us an email to: hello@allen-york.com and we’ll be in touch to demonstrate how.