FIDI has raised its sustainability bar. Here is what every member needs to know.

New minimum requirements under FD 5.4 are in effect from January 2026

From January 2026, every FIDI member must have a documented ESG programme covering environmental, social, and governance commitments. This is no longer a future ambition; it is a membership requirement, verified by an auditor.

All three pillars are mandatory. FIDI is doing this help members future-proof their businesses. And these changes will clearly create financial and other business value for members when these requirements are changed into effective implementation.

ENVIRONMENTAL: Members need a written Environmental Policy with management sign-off, regular impact assessments, and SMART goals covering energy, waste, and carbon. FIDI recommends reporting Scope 1 and 2 emissions as a minimum.

SOCIAL: Members need a Social Policy covering health, safety, and wellbeing; diversity, equity, and inclusion; fair treatment of employees; engagement; learning and development; and community impact. A regular assessment of social impact is also required.

GOVERNANCE: Members need clear policies and procedures for running the programme, annual staff training tied to job roles, one named person accountable for sustainability, and regular reporting to staff, customers, and the supply chain on progress and risk.

What gets verified? Policies and documentation. Evidence of internal and external communication. A named accountable person on record. Training logs. A monitoring and review process showing the programme is continuous.

Most businesses fall short because their policies exist but have not been updated since the requirements changed; their goals are vague rather than measurable; no one has been formally named as accountable; training has happened but was never recorded; social impact has never been assessed; and progress is reported internally but not shared with clients or suppliers.

None of these gaps are insurmountable. Most can be fixed without significant cost.

Where to start?

Start with an honest review of what you already have and what you can evidence. Name the person accountable for sustainability and put your governance structure in place before drafting new policies. Make use of the free resources available: FIDI’s Carbon Calculator, the UN Global Compact, the GHG Protocol, SME Climate Hub, HSE, and ACAS all provide practical tools at no cost.

JustOne has produced a free support guide covering every mandatory requirement, with practical signposting to free resources for each one.

Download the free Sustainability Support Guide for FIDI requirements.

If you need help, we can also draft your policies and advise on implementation.

For faster audit readiness, say hello@justone.uk