20 June 2023: UK Sustainability Disclosures Policy and Implementation Committee (PIC) – summary minutes
Updated 15 November 2024
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UK Sustainability Disclosures Policy and Implementation Committee (PIC)
Summary minutes of the first session of the PIC on 20 June 2023.
For more information on the remit and responsibilities of the Policy and Implementation Committee, see our Framework for developing UK Sustainability Reporting Standards, which is referred to as the ‘Framework Document’ in these minutes. Also in these minutes, ‘Committee’ refers to the PIC. ‘The Secretariat’ refers to the PIC Secretariat, provided by DBT.
1. UK endorsement and implementation process
The Secretariat provided a brief introduction to the IFRS® Sustainability Disclosure Standards (IFRS S1 and S2) and set out the UK’s planned process for the endorsement and implementation of UK Sustainability Disclosure Standards.
The Secretariat emphasised that endorsement decisions will be taken separately from implementation decisions.
The Committee noted that the process used will be different to that used for the endorsement and adoption of IFRS Accounting Standards by the UK Endorsement Board.
The Committee recognised the importance of consistency between Companies Act obligations and the Financial Conduct Authority’s listing rules.
The Committee discussed the importance of international alignment and the potential consequences of deviations from IFRS S1 and S2.
1.1 Policy and Implementation Committee role and structure
The Committee agreed that its broad role and responsibilities, as presented by the Secretariat, and those of the Technical Advisory Committee (TAC).
The Committee agreed that it is necessary for the UK to have an ability to amend a standard, or to choose not to endorse a standard – the bar for either of these should be high, reflecting the importance of international comparability. This is not the same as committing to endorsing all (current and future) IFRS Sustainability Disclosure Standards.
1.2 Timings and engagement
The Secretariat is engaged with a number of other jurisdictions and will continue and develop this engagement. The Committee will also monitor activities on IFRS S1 and S2 in other jurisdictions.
The Committee noted the process for the UK’s adoption of International Accounting Standards Board (IASB) standards.
2. AOB, actions and next steps
The Committee agreed to meet in July, after IFRS S1 and S2 are published (expected on 26 June).