Mha Plc · LSE:MHA
Mha — Investor Presentation (September 2026)
112 slides from Mha's investor presentation, September 2026
Slide 1: Finance Directors Update Course
Finance Directors Update Course September 2026
Slide 2: Disclaimer & Copyright
Disclaimer You shall not copy, make available, retransmit, reproduce, sell, disseminate, licence, distribute, publish, broadcast or otherwise circulate either within your business or for public or commercial purposes any of (or any part of) these seminar materials provided by MHA Audit Services LLP
Slide 3: Thank you for joining us
Thank you for joining us A copy of the slides has been sent to you this morning and are available to download from our website, via the QR code here, or via the link in the Chat, where you will also find other useful information. Please use the Q&A to ask any questions. We will do our best to answer
Slide 4: Feedback & CPD Certificates
Feedback & CPD Certificates This is a CPD Course and provides 3 hours of relevant CPD. Please use our feedback form to request your CPD certificate for attending. Certificates will be sent out by the end of October, once your attendance has been verified. We appreciate all feedback, which helps us t
Slide 5: Our Speakers
Our Speakers Martyn Gordon Emeritus Professor Neil Parsons Richard Maitland Jonathan Dowding Alex Lubbock Joe Nellis Senior Tax Manager Head of Financial Reporting Employment Tax International Tax Senior Tax Manager & Chairperson Head of Economic Advisory and Company Law Partner Partner Research Sue
Slide 6: Agenda
Agenda Time Slot Duration Speaker Topics 08.30 – 08.40 10 Martyn Gordon, National Senior Tax Training Manager Welcome & Introduction 08.40 – 09.25 45 Emeritus Professor Joe Nellis, Head of Economic Research Economic update 09.25 – 09:55 30 Neil Parsons, Technical Director Audit & Accounting Standard
Slide 7: Poll Results - Biggest Challenges
Poll Results - Biggest Challenges 0% 10% 20% 30% 40% 50% 60% 70% Inflation & cost pressures Interest rates & financing Economic & Financial Wage pressures People & Workforce Employee retention & upskilling Confidence & demand Technology & AI adoption Geopolitical risks External operating environment
Slide 8: Poll Results – Highest priorities
Poll Results – Highest priorities 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Profitability & efficiency Financial stability & risk management Economic & Financial Debt reduction & liquidity management Retaining talent & team development People & Workforce Restructuring & workforce optimisation Investing
Slide 9: Economic Update
Economic Update Emeritus Professor Joe Nellis Head of Economic Research 9
Slide 10: The Business Environment – VUCA is the New Normal
The Business Environment – VUCA is the New Normal V U C A Volatility Uncertainty Complexity Ambiguity Rate of change Unclear about the present Multiple key decision Lack of clarity about factors meaning of an event 10
Slide 11: Global Economy — an overview
Global Economy — an overview 1 Energy and geopolitics have interrupted the disinflation story after COVID. 2 Europe faces a competitiveness and productivity challenge as well as a cyclical slowdown. 3 The UK has proved more resilient, but the labour market is cooling, and fiscal room remains limited
Slide 12: Global Economy - still growing, but hardly booming
Global Economy - Real GDP growth forecasts (%) still growing, but IMF, July 2026 hardly booming 2026 2027 Fastest growth 1 Global growth is expected to dip in 2026 before 6.4 6.7 recovering in 2027. 6% 2 The US remains comparatively resilient but far from firing on all cylinders. 4.6 4.1 3 Europe re
Slide 13: The Global Economy - pulled in opposite directions
The Global Economy - pulled in opposite directions 1 Energy Shocks Higher oil, gas and transport costs; renewed inflation risks; weaker real incomes. 2 AI Investment Strong demand for chips, data centres, software and power infrastructure. 3 Trade Frictions Tariffs and policy uncertainty continue to
Slide 14: Europe: stuck in slow gear?
Europe: stuck in slow gear? The challenge is increasingly structural, not simply cyclical 1 1.2% Energy-intensive economies & sectors remain exposed to ongoing energy shocks. 0.9% 2 Domestic demand is supported by employment and Euro area GDP Euro area GDP household balance sheets, but confidence is
Slide 15: But Europe is not one economy!
Real GDP growth forecasts % But Europe is not one economy! 1 Southern and parts of Central Europe continue to outperform the large core economies of Germany, France and Italy. 2 Germany’s weak growth remains a major drag on the European aggregate. 3 But individual country and sector exposure matters
Slide 16: European inflation: ongoing energy problem
European inflation: ongoing energy problem Disinflation had resumed recently, but the path is no longer straightforward 1 Energy has pushed euro-area inflation higher to 3.3% in August – ongoing Middle East shocks. 2 The ECB raised interest rates in June and held them in July: policy is firmly data-
Slide 17: UK: resilient in H1
UK: resilient in H1 Q2 surprised on the upside — but hiring and wage momentum are fading 1 GDP grew 0.4% in Q2 after 0.6% in Q1. 2 The labour market weakened further in Q2: unemployment held at 4.9% but vacancies fell to 707,000. 3 Private-sector wage growth slowed to 2.8%, its weakest since late 20
Slide 18: Inflation on the rise – but don’t panic!
Inflation on the rise – but don’t panic! 1 Underlying domestic inflation has eased materially since the 11.1% peak in October 2022. 2 Inflation rose from 2.6% in June to 2.9% in July. 3 But the Bank of England expects headline inflation to rise still further as higher energy prices pass through. 4 T
Slide 19: Bank of England: growth v inflation
Bank of England: The balancing act growth v inflation Growth outlook Inflation risk Six MPC members voted to hold in July; three voted July MPC for an immediate 25bp increase. 28 October Budget 6 voted to hold Fiscal choices 3 preferred +25bp 1 The MPC meets today – decision at midday! Q2 GDP Pensio
Slide 20: The UK's fiscal constraint is impacting growth
The UK's fiscal constraint is impacting growth 10-year UK Government Bond Yield ➢ Public sector finances leave limited room for a broad- based fiscal stimulus. Implications for: ➢ Ageing, defence, infrastructure and the energy transition • Government finances? all increase medium-term spending press
Slide 21: G7 bond yields: UK borrowing costs stand out
G7 bond yields: UK borrowing costs stand out ➢ The UK has the highest 10-year government bond yields in the G7. ➢ UK yields are almost 2 percentage points above Germany’s — a significant fiscal premium. ➢ Higher long-term yields increase debt-servicing costs and tighten the room for manoeuvre in fis
Slide 22: The global risk map for the next 12 months
The global risk map for the next 12 months • Geopolitical flashpoints and sustained energy shocks • More fractures in the global trading system • Sustained weak growth in the euro area • Rising national debt burdens and financial market volatility • Accelerating AI and productivity gains • Disinflat
Slide 23: The UK Economy: 10 defining challenges
T he UK E conomy : 10 defining challenges The next decade will be shaped by a difficult mix of weak supply-side performance, fiscal pressure and global disruption 1 Productivity stagnation 6 Energy security and transition Escaping the low-growth trap Delivering affordable, reliable net zero 2 Fiscal
Slide 24: The UK Economy: 10 biggest opportunities
T he UK E conomy : 10 biggest opportunities The coming decade offers major opportunities to build on the UK’s strengths in knowledge, innovation, services and global connectivity 1 Artificial intelligence 6 Creative and digital industries Turning a strong research base into Exporting culture, conten
Slide 25: What does this mean for businesses?
What does this mean for businesses? ➢ FINANCING — Don’t assume that borrowing costs will fall quickly. ➢ PRICING — Energy and imported-cost volatility may reappear even as wage pressure eases. ➢ INVESTMENT — AI, automation and energy efficiency can offset weak labour-force and productivity trends. ➢
Slide 26: The Business Environment
The Business Environment The Leadership Context: VUCA is the New Normal! How should business leaders rethink strategy, culture and investment when volatility, uncertainty, complexity and ambiguity are no longer temporary — but permanent? 26
Slide 27: And finally…
And finally… “In a time of rapid change, standing still is the most dangerous course of action ” BRIAN TRACY 27
Slide 28: Audit & Accounting Standards
Audit & Accounting Standards Neil Parsons Head of Financial Reporting Advisory and Company Law Neil.Parsons@mha.co.uk 28
Slide 29: Content of session and timeline for developments
Content of session and timeline for developments Periods commencing on or after 1 January 2025 Revised UK Corporate Governance Code applies (all provisions except the board declaration) Periods commencing on or after 6 April 2025 Directors’ Report repealed disclosures take effect and revised company
Slide 30: Changes to AIM rules
Changes to AIM rules Applicable financial reporting framework (AIM rule 18) Fundamental changes to the AIM rules affecting corporate reporting were made during August 2026 which were immediately effective from date of issue of revised rules. Revised AIM rules effective from 5 August 2026 Companies i
Slide 31: Changes to AIM rules
Changes to AIM rules Companies incorporated outside of the UK or an EEA state must apply: • International Accounting Standards; • US Generally Accepted Accounting Principles; • Canadian Generally Accepted Accounting Principles; Revised AIM rules effective • Australian International Financial Reporti
Slide 32: Changes to AIM rules
Changes to AIM rules Corporate Governance arrangements (AIM rule 26) Revised website disclosure requirements: • Board composition Revised AIM rules effective • Role and responsibilities and functions of each director for from 5 August 2026 delivery of strategy, commercial objectives, effective manag
Slide 33: Changes to AIM rules
Changes to AIM rules Corporate Governance arrangements (AIM rule 26) AIM companies no longer need to report on a comply-or-explain basis against a 'recognised code' on their website. Revised AIM rules effective from 5 August 2026 Revised website disclosure requirements: • Board composition • Role an
Slide 34: Revised UK Corporate Governance Code (Provision 29)
Revised UK Corporate Governance Code (Provision 29) Provision 29 states the following: The FRC has provided guidance in the form of a “Provision 29 Myth buster” setting out high level considerations on what the declaration should consider but has not provided a standard form of wording. 34
Slide 35: Directors’ Remuneration Report simplifications
Directors’ Remuneration Report simplifications For accounting periods commencing on or after 11 May 2025 the following simplifications apply. Disclosures no longer required • Column subtotals for “fixed” and “variable” remuneration • % changes in remuneration of employees and directors • Details of
Slide 36: Directors’ Remuneration Report simplifications
Directors’ Remuneration Report simplifications For accounting periods commencing on or after 11 May 2025 the following simplifications apply. Reduction of some burdens • No longer necessary for directors’ remuneration report to be held on company website for 10 years • Unquoted traded companies no l
Slide 37: Other developments in narrative reporting
For accounting periods commencing on or after 6 April 2025 the Other Directors’ Report of a UK company will no longer require the developments in following disclosures: narrative reporting • Information about financial instruments • Information about important events that have occurred since the end
Slide 38: Other developments in narrative reporting
For accounting periods commencing on or after 1 January 2026, unless exemptions apply (see next page) the Directors’ Report of Other a UK company will be required to include information on supplier payments in respect of qualifying contracts as follows: developments in narrative reporting • • Paymen
Slide 39: Other developments in narrative reporting
Exemptions: Where a group directors report is prepared (containing the relevant information) there is no requirement for the subsidiary to individually report on its own payment practices and Other performance. developments in Parent companies are able to do this where: narrative reporting • the com
Slide 40: Content of session and timeline for developments
Content of session and timeline for developments 31 December 2026 • Transition period ends for individuals on Companies House register requiring identification • Companies House compliance processes on those failing to identify commence • Increased level of cross checking of information on register
Slide 41: Modernising Corporate Reporting to support long term economic growth
The most fundamental proposals to change corporate reporting and auditing for many years Modernising Corporate Reporting to support long term economic growth Government plans to modernise corporate reporting See government landing page for consultation Consultation period ends on 30 November 2026 41
Slide 42: Objectives and principles behind consultation
Objectives and principles behind consultation Objectives and Principles Objective: Support economic growth and the UK’s international competitiveness by ensuring the corporate reporting framework is proportionate and effective. 1 2 3 4 5 Clarity of purpose Flexibility and trust Simplicity and Propor
Slide 43: Modernising Corporate Reporting: consultation questions
Creating separate financial reporting frameworks (standards) for micro, SME, large, and not for profit, and retain IFRS also? Modernising Making Companies Act 2006 disclosures part Simplification of laws on distributions to Corporate Reporting to support long term reflect a solvency basis? of accoun
Slide 44: Modernising Corporate Reporting: consultation questions
Repeal directors’ report but retain Strategic Report for large companies Modernising Corporate Reporting Put requirements of the SORPs into the Repeal payments to governments to support long term accounting standards? Clarity of purpose economic growth regulations? Flexibility and Fit for the future
Slide 45: Modernising Corporate Reporting: consultation questions
Introduce disclosure requirements of International Sustainability Standards into Companies Act 2006? Modernising sustainability and climate related disclosures? Create a very large company category under Consider a separate report containing all Corporate Reporting to support long term Companies Act
Slide 46: Preparedness for reporting season
Preparedness for reporting season 46
Slide 47: Checklist for Finance Directors and Finance Teams
Checklist for Finance Directors and Finance Teams Item Requirement Yes / No / NA All non-listed companies – for accounting periods on or after 6 April 2025 double check 1 changes to company size criteria and review availability of reporting and audit exemptions based on size FRS 102 reporters (all)
Slide 48: Break
Break We will resume shortly 48
Slide 49: Employment Tax
Employment Tax Richard Maitland Employment Tax Partner Richard.Maitland@mha.co.uk 49
Slide 50: Employment tax update
Employment tax update Mandatory payrolling of benefits in kind • Now a phased approach • Phase 1 – April 2027 – cars, vans, fuel, private medical • Phase 2 – April 2028 - "most other BIKs" • Not loans and accommodation 50
Slide 51: Potential future developments
Potential future • Changes to PSAs (PAYE Settlement developments Agreements) ? • Extend Employer NIC reduction for young workers ? • IR35 / Off-payroll working developments ? • Labour supply chains and umbrella companies – impact of recent changes 51
Slide 52: Corporate & International Tax
Corporate & International Tax Jonathan Dowding Alex Lubbock International Tax Partner Senior Tax Manager Jonathan.Dowding@mha.co.uk Alexander.Lubbock@mha.co.uk 52
Slide 53: What we’re talking about today
What we’re talking about today 1. Withholding tax 2. Corporation residence 3. Pillar 2 4. Transfer pricing - ICTS 53
Slide 54: Consultation: WHT paid overseas
Consultation: WHT paid overseas Interest Overseas UK Co lender WHT HMRC Consultation on WHT on overseas interest • Closed on 7 September, the consultation sought views on simplifying claims for treaty relief on interest paid overseas 54
Slide 55: Corporate Residence – A Growing Area of Concern
Corporate Residence – A Growing Area of Concern The proliferation of international working and an increase in non-resident directors make it important for businesses to review their travel and remote working policies. A company is tax resident in the UK if it is: • Incorporated in the UK (statutory
Slide 56: Dependent Agent PE (DAPE)
Dependent Agent PE (DAPE) “a person … is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any act
Slide 57: Implications of creating a PE
Implications of creating a PE • Reporting and compliance obligations • Complex profit attribution rules • Local filing requirements • Cash flow impact where WHT charged • Employment tax requirements 57
Slide 58: Mandatory Foreign PE Exemption
Mandatory Foreign PE Exemption Foreign branch exemption becomes mandatory • For accounting periods beginning on or after 1 January 2027. • Foreign branch profits and losses excluded from UK corporation tax • Companies with overseas branches should review forecast losses, existing loss pools and thei
Slide 59: Mandatory Foreign PE Exemption
Mandatory Foreign PE Exemption Comparison Foreign Branch Current elective regime New mandatory regime UK profit £1,000,000 £1,000,000 Branch profit/(loss) (£200,000) (£200,000) Branch treatment No election Mandatory exemption UK taxable profit £800,000 £1,000,000 UK CT @ 25% £200,000 £250,000 59
Slide 60: Pillar Two
Pillar Two First Compliance Cycle • December 2024 – submission in. • March 2025 – due the end of this month. • HMRC approach. Second Compliance Cycle • 15-month filing deadline. • More Countries have implemented = more filings. • Low tax jurisdictions. • Under Taxed Profits Rule ("UTPR"). Future Com
Slide 61: Transfer Pricing: ICTS on the horizon
Transfer Pricing: ICTS on the horizon The International Controlled Transactions Schedule New mandatory reporting of cross-border related-party transactions, filed alongside the annual corporation tax return. Effective for accounting periods beginning on or after 1 January 2027. Get ahead of the curv
Slide 62: Preparing for Electronic Invoicing; HMRC’s New Error Correction Regime
Preparing for Electronic Invoicing HMRC’s New Error Correction Regime Sue Rathmell VAT & Indirect Tax Partner Sue.Rathmell@mha.co.uk 62
Slide 63: UK e-invoicing is coming – be ready
UK e -invoicing is coming – be ready • The UK Government has confirmed that e-invoicing will become mandatory for all B2B and B2G VAT invoices from 1 April 2029. • Even if you don’t issue VAT invoices, you will need to be able to receive e-invoices • This will represent a significant change to the w
Slide 64: What is an e-invoice?
What is an e -invoice? • It is an electronically issued document created when a supplier generates an e- invoice in their accounting system. • The invoice is sent by secure transmission through a trusted network (PEPPOL) to the buyer’s accounting system. • The buyer’s system checks syntax, supplier
Slide 65: Why is the Government introducing it?
Why is the Government introducing it? • E-invoicing forms part of the wider modernisation of the UK tax system • The Government expects e-invoicing to support: • Greater automation of business processes • More efficient invoice processing • Improved accuracy and fewer manual errors • Easier tax comp
Slide 66: What has been confirmed?
What has been confirmed? • Mandatory e-invoicing is expected to apply to all VAT invoices from 1 April 2029. • The new regime is intended to operate across the private and public sectors. • HMRC has a dedicated team considering implementation. • HMRC is reviewing different business sectors, VAT syst
Slide 67: Important details are still being developed
Important details are still being developed • Businesses should expect further rules and guidance • Areas requiring detailed consideration include: • Which transactions and invoice types will fall within the regime • The technical standards and transmission mechanisms to be used • How different acco
Slide 68: E-invoicing is a business-wide change project
E-invoicing is a business -wide change project The change will affect: • Finance: accounts payable, accounts receivable, VAT • Sales: customer requirements and order-to-cash coding and reconciliations. processes. • Tax: invoice validity, VAT treatment, special schemes • Legal and commercial teams: c
Slide 69: What should you do now?
What should you 1 2 3 do now? Start with a readiness assessment Map Assess Plan • Document how sales and • Review the capability of • Establish ownership across purchase invoices are accounting, billing and tax, finance, IT, procurement currently created, sent, procurement systems. and operations. r
Slide 70: HMRC’s New Error Correction Regime
HMRC’s New Error Correction Regime What the draft legislation means for businesses • HMRC has published draft legislation and a policy paper that would significantly change how taxpayers correct errors. • Two reforms: a new statutory obligation on taxpayers to correct known errors, and a new HMRC po
Slide 71: The New Statutory Duty to Correct
The New Statutory Duty to Correct 1 2 3 A proposed new Schedule 24A to Finance Act 2007 would require a A duty, not an Failure to act becomes When does ‘awareness’ taxpayer who becomes aware of an expectation ‘deliberate’ begin? inaccuracy to take steps to secure its correction. Methods of adjustmen
Slide 72: The Customer Correction Notice
The Customer Correction Notice 1 Take reasonable steps to correct or explain why no HMRC will be able to issue a notice where it error exists. suspects a document contains an error still capable of correction. 2 Failing to engage could In practice, a CCN is a nudge letter with then be treated as gre
Slide 73: Practical Steps for Businesses
Practical Steps for Businesses Finding an error may not be the primary risk – failing to act once it is found could be far more serious. Businesses: strengthen tax governance • Establish formal processes for recording identified errors. • Maintain contemporaneous documentation supporting filing posi
Slide 74: Break
Break We will resume shortly 74
Slide 75: Share Schemes & Employee Ownership
Share Schemes & Employee Ownership Hasan Hashmi Jonathan Harvey Tax Director Senior Tax Manager hasan.hashmi@mha.co.uk Jonathan.Harvey@mha.co.uk 75
Slide 76: Session Topics
Session Topics • Scheme objectives, selection and design of equity incentives • Common challenges when implementing share schemes • Routes to provide equity incentives • The tax implications of issuing shares to employees and EMI overview • Recent and upcoming changes 76
Slide 77: Share schemes Objectives, design, and selection
Share schemes Objectives, design, and selection 77
Slide 78: What are the commercial objectives?
What are the commercial objectives? Share schemes help you recruit, retain and motivate employees They are likely to be appropriate for companies: To control cashflow by Where substantial Looking to grow value To bring in offering shares instead growth is anticipated with a view to an exit in manage
Slide 79: Design: the key decisions
Design : the key decisions • Key terms of the incentive: • Who? All or some employees? • What? Size of awards, vesting conditions, cost to acquire • When? Acquisition now (award) or in the future (options)? • How? Understanding how the incentive will work and when it is likely to be realised. • What
Slide 80: Scheme design - Common challenges
Scheme design - Common challenges Who: Leavers (Good & Bad) What: Valuation When: Options - Vesting and/or ‘Exit’ only How: funding and realisation Incentive mechanics – simple vs complicated 80
Slide 81: Share schemes Routes to provide incentives
Share schemes Routes to provide incentives 81
Slide 82: Selection of share scheme – Award of shares
Selection of share scheme – Award of shares Simple award Growth share Nil or partly paid Phantom arrangements 82
Slide 83: Selection of share scheme – Share option
Selection of share scheme – Share option Non-tax advantaged Discretionary plans, e.g., EMI and CSOP All-employee plans, e.g., SAYE 83
Slide 84: Base case tax treatment of share awards and options
Base case tax treatment of share awards and options • Imposes a tax charge: • On award where securities are issued to employees • On exercise of an option where a share option is granted • Other ERS charges can arise such as where there is a disposal for more than market value or there are artificia
Slide 85: Enterprise Management Incentives (EMIs)
Enterprise Management Incentives (EMIs) The most tax efficient Key requirements • No IT at grant • Must be an independent trading company • No IT (or NIC) at exercise if granted at MV • Gross asset requirement • Growth usually subject to CGT • Working time requirements • Reduced requirements for BAD
Slide 86: Recent and upcoming changes
Recent and upcoming changes 86
Slide 87: EMIs — a bigger opportunity from April 2026
EMIs — a bigger opportunity from April 2026 Up to April 2026 From 6 April 2026 • <£30m gross assets • <£120m gross assets • <250 employees • <500 employees • £3m company option limit at grant (UMV) • £6m company option limit (UMV) • Maximum options holding period of 10 years • Maximum option holding
Slide 88: EMI not available? The CSOP alternative
EMI not available? The CSOP alternative Tax implications Key requirements • No IT (or NIC) at grant or exercise • Must be an independent company • Growth usually subject to CGT • Must not be granted at a discount to the • CT deduction at exercise shares market value on the grant date • Can be offere
Slide 89: Upcoming changes to reporting
Upcoming changes to reporting • From April 2027, EMI notifications will no longer need to be made via a separate return; • ERS bulletin 67 • HMRC announced an overhaul to the ERS annual returns to ‘improve accessibility’. • From April 2027, new returns will need to be used to report events under ERS
Slide 90: Mergers & Acquisitions (M&A) Tax Consideration
Mergers & Acquisitions (M&A) Tax Consideration Nathan Sutcliffe Tax Partner nathan.sutcliffe@mha.co.uk 90
Slide 91: Today's focus
Today's focus Three areas where tax shapes the 1. Negotiating transaction terms outcome of a deal • Allocating proceeds between shareholders • Structuring earn-outs 2. Due diligence risks The tax exposures that surface during diligence, and how they feed through to warranties, indemnities and price.
Slide 92: Transaction terms
Transaction terms Allocation of proceeds A differential in price per share between shareholders has always drawn tax scrutiny, particularly where those receiving more are employees or directors. CooperVision Lens Care Ltd v HMRC [2026] UKFTT 324 (TC) has sharpened the focus. • Where shareholders hol
Slide 93: Due diligence risks
Pillar 2 Due diligence • Compliance will be a major factor risks in diligence review, so reviewing your own position is critical. • Just as important is how bringing Equity incentives in a new entity or group affects your own position. Not diligence as • Tax-advantaged schemes such as EMI such, but
Slide 94: Post-transaction tax considerations
Post -transaction tax considerations Implementation and risk • Implementing the actions required for successful tax structuring, such as transfer pricing analysis and withholding tax arrangements. • A plan to manage the risks identified in diligence. In a buy and build context in particular, these c
Slide 95: ESG: Sustainability Assurance, Governance & Director Responsibilities
ESG: Sustainability Assurance, Governance & Director Responsibilities Mark J. Lumsdon - Taylor Global Executive Lead Development & Sustainability Mark.Lumsdon-Taylor@mha.co.uk 95
Slide 96: Sustainability reporting standards and emerging regulations (1)
Sustainability reporting standards and emerging regulations (1) 96
Slide 97: The Sustainability Horizon UK & Europe
The Sustainability Taskforce for Nature-related Financial Disclosures (TNFD) Considers environmental impact on Horizon UK & Europe ecosystems, biodiversity and indigenous communities, may be endorsed at COP28 or COP29, applies ‘double materiality’, No mandatory implementations Scope 4 emissions repo
Slide 98: The Sustainability Horizon UK & Europe
The Sustainability Taskforce for Nature-related Financial Disclosures (TNFD) Considers environmental impact on Horizon UK & Europe ecosystems, biodiversity and indigenous communities, may be endorsed at COP28 or COP29, applies ‘double materiality’, No mandatory implementations Scope 4 emissions repo
Slide 99: The Global Landscape
The Global Landscape Regulations Reporting Frameworks ‘ VALUE REPORTING ives) FOUNDATION . 2 @) as cstues ~2PRI wasnt OS Global Goals DEVELOPMENT AGREEMENT 5o)s GOALS © sees
Slide 100: The Global Landscape
The Global Landscape INTEGRATED IR ll REPORTING (SASK TCFD MEFRAG TPIS IFRS S1 & S2 ESRS 1&2
Slide 101: Global reporting convergence – August 2026
Global reporting convergence – August 2026 EU/CSRD: Omnibus cuts CSRD scope by 80%, raising thresholds to >1,000 staff and >€450M turnover while slashing mandatory data points by over 60% Sources: MHA Core research across Baker Tilly International & S&P Global Energy, Data as of January 2026. “Adopt
Slide 102: Technical Dive into ISSB Standard 1 Standard 2 & CSRD Alignment (2)
Technical Dive into ISSB Standard 1 Standard 2 & CSRD Alignment (2) 102
Slide 103: Where do we stand currently with Regulatory ESG Reporting in the UK
STANDARD · S2 UK SRS S2 PROPOSED MANDATORY [NOTE: AMENDMENTS] COVERS: Climate: GHG Scope 1/2/3 via the GHG Protocol, scenario analysis, transition planning. WHO: UK-listed companies (UKLR 6, 14, 15, 16, 22); proposed mandatory for Where do we stand financial years from 1 Jan 2027. currently with Reg
Slide 104: The implementation of the ‘new normal’ with UK SRS S1 & S2
Taskforce Climate Related Disclosures (TCFD) & Climate Financial Disclosures (CFD) Existing TCFD (Task Force on Climate-related Financial Disclosures) reporting will not satisfy UK SRS S2 (UK Sustainability Reporting Standard S2). The gap is not structural: the four pillars of governance, strategy,
Slide 105: Global Multinational complex international reporting considerations
Dimension ISSB (IFRS S1/S2) CSRD (ESRS) Issuer IFRS Foundation / ISSB European Commission / EFRAG Legal status Voluntary global baseline Binding EU directive Global Multinational Published June 2023 2022 (Omnibus revisions 2026) complex international Architecture IFRS S1 + IFRS S2 (topic ESRS 1 + ES
Slide 106: MHA industry view on sustainability reporting best practices (3)
MHA industry view on sustainability reporting best practices (3) 106
Slide 107: Emerging themes from Clients, Research & work with regulators
Emerging themes Convergence: Continued ‘ISSB & CSRD debate’ as which is the global baseline, with IFRS S2 from Clients, increasingly used as the common climate language. Efficiency is priority, with S1 following S2 integration in reporting. Research & work Business Insight: Multi Nationals are restr
Slide 108: Emerging themes from Clients, Research & work with regulators
Emerging themes Integration: Climate reporting models are being integrated into financial resilience frameworks from Clients, without the incorrect reliance on 3rd party documentation (Circa 40% of Multinationals still publish separate documentation). The ‘global operating model’ Research & work is
Slide 109: Example: Global Reporting Strategy Framework
Mock example Example: PHASE 2 Global Reporting Strategy Framework Approach: CSRD-aligned global reporting foundation that efficiently satisfies all jurisdiction-specific obligations, minimises duplication and positions for future regulatory expansion. GLOBAL FOUNDATION - CSRD / ESRS aligned (satisfy
Slide 110: What we are seeing from large multi-national corporates
What we are seeing from large multi-national corporates Observations on industry sustainability reporting best practices: • Comprehensive coverage of sustainability strategy implementation efforts linked to business value, moving beyond ESG commitments and target setting • Detailed Climate Transitio
Slide 111: Questions?
Questions? Martyn Gordon Neil Parsons Richard Maitland Jonathan Dowding Alex Lubbock Senior Tax Manager Head of Financial Reporting Employment Tax Tax Director Tax Senior Manager & Chairperson Advisory and Company Law Partner Sue Rathmell Hasan Hashmi Jonathan Harvey Nathan Sutcliffe Mark J. Lumsdon
Slide 112: Save the date: Finance Directors Update Course
Save the date Finance Directors Update Course Date: 11th February 2027 Time: 8:30 – 12:30 CPD: 3 hours www.mha.co.uk/events/finance-director-update-webinar-february-2027 Thank you for joining us today! © 2026 MHA