UK Sustainability Reporting Standards
Information on the UK government’s framework to create UK Sustainability Reporting Standards (UK SRS) by assessing and endorsing the global corporate reporting baseline of IFRS Sustainability Disclosure Standards.
Background to the standards
The creation of the International Sustainability Standards Board (ISSB) was announced at COP26, the 2021 UN Climate Change Conference in Glasgow, with the role of creating a global baseline for sustainability reporting. The ISSB is a standard-setting board of the International Financial Reporting Standards (IFRS) Foundation, a not-for-profit organisation that sets global corporate reporting standards through the International Accounting Standards Board (IASB).
The ISSB’s overriding aim is to provide standards that deliver comparable and decision-useful information for investors – the disclosures required by their standards is intended to help investors to compare information between companies, support the efficient allocation of capital, and the smooth running of capital markets.
ISSB published its first 2 new standards on 26 June 2023. They are:
- IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information
- IFRS S2: Climate-related Disclosures
What the UK is doing
The UK government has been a strong supporter of the ISSB since its launch. In its mobilising green investment: 2023 green finance strategy, the UK government laid plans to establish a framework to assess the suitability of IFRS S1 and IFRS S2 for endorsement in the UK.
If this process concludes with an affirmative endorsement decision, it would result in the creation of the first two UK Sustainability Reporting Standards (SRS), which would be based upon IFRS S1 and IFRS S2. The UK government aims to make endorsement decisions on the first two standards by Quarter 1 2025 and these standards will form part of a wider Sustainability Disclosure Reporting framework led by HM Treasury – for more information, see the SDR Implementation Update (May 2024).
Once the assessment process is complete, and subject to an affirmative endorsement decision, the Financial Conduct Authority (FCA) will be able to use the UK’s standards to introduce requirements for UK-listed companies to report sustainability-related information to their investors, subject to a consultation process.
Subject to an affirmative endorsement decision, the government will also decide on disclosure requirements against the endorsed standards for UK companies that do not fall within the FCA’s regulatory perimeter. That decision will take into account a number of factors, including costs for reporting companies and benefits for investors that may wish to use this information.
For more information on our work on UK SRS, see our Framework and Terms of Reference for the Development of UK Sustainability Reporting Standards.
To assist with the assessment and endorsement of IFRS S1 and IFRS S2, and any implementation of resulting UK SRS, the UK government has established 2 committees, an independent Technical Advisory Committee (TAC) and a Policy and Implementation Committee (PIC).
UK Sustainability Disclosure Technical Advisory Committee (TAC)
The purpose of the TAC is to assess IFRS Sustainability Disclosure Standards on a technical basis and provide independent recommendations on endorsement to the Business and Trade Secretary. TAC is formed of a chair and members from a range of relevant professional backgrounds. More information is available via the Financial Reporting Council (FRC) website and a news article on GOV.UK.
TAC’s operations are supported by the FRC, including the provision of a secretariat.
The TAC secretariat published a call for evidence on IFRS S1 and IFRS S2, which closed on 11 October 2023. Responses are available to read on the FRC website. The responses will assist the TAC as it develops recommendations on the endorsement of IFRS S1 and IFRS S2.
UK Sustainability Disclosure Policy and Implementation Committee (PIC)
PIC is formed of UK government and regulator representatives and its main role is to coordinate the implementation of any UK SRS. The members of the PIC will also, as a secondary function, consider whether the endorsement of any IFRS Sustainability Disclosure Standard has significant interactions with the remits of their respective organisations.
PIC’s membership consists of UK government departments and regulators, including:
- Bank of England
- Department for Energy Security and Net Zero (DESNZ)
- Department for Environment, Food and Rural Affairs (Defra)
- Department for Work and Pensions (DWP)
- Financial Conduct Authority (FCA)
- Financial Reporting Council (FRC)
- HM Treasury
- the Foreign, Commonwealth and Development Office (FCDO)
- UK Endorsement Board (UKEB)
It will also be used for different members to share information:
- on their influencing activities related to the development of standards
- to help Department for Business and Trade (DBT) officials advise the Business and Trade Secretary
- on relevant contextual matters that DBT can share with TAC
PIC meetings are held in private. However, summary minutes from PIC meetings will be made available by date in the ‘publications’ section of this page.
Feedback
If you have any questions or comments on this work, you can contact UK.SRS@businessandtrade.gov.uk
Last updated 16 May 2024 + show all updates
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Updates made regarding UK Sustainability Reporting Standards following the publication of a Framework Document that sets out detail on the process to create UK SRS.
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First published.