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Background to the standards

The creation of the听International Sustainability Standards Board (ISSB)听was announced at COP26, the 2021 UN Climate Change Conference in Glasgow, with the role of creating a global baseline for sustainability reporting. 罢丑别听ISSB听is a standard-setting board of the听, a not-for-profit organisation that sets global corporate reporting standards through the International Accounting Standards Board (IASB).

罢丑别听ISSB鈥檚 overriding aim is to provide standards that deliver comparable and decision-useful information for investors 鈥� 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听听on 26 June 2023. They are:

• IFRS听S1: General Requirements for Disclosure of Sustainability-related Financial Information
• IFRS听S2: Climate-related Disclosures

What the UK is doing

The UK government has been a strong supporter of the听ISSB听since its launch. In its听mobilising green investment: 2023 green finance strategy, the UK government laid plans to establish a framework to assess the suitability of听IFRS听S1 and听IFRS听S2 for endorsement in the UK.

If this assessment process concludes with an affirmative endorsement decision, it would result in the creation of the first two UK听Sustainability Reporting Standards (SRS), which would be based upon听IFRS听S1 and听IFRS听S2. The UK government aims to consult on the exposure drafts of UK SRS in Quarter 1 2025. These standards will form part of a wider Sustainability Disclosure Reporting framework led by HM Treasury 鈥� for more information, see the听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 UK SRS to introduce requirements for UK-listed companies to report sustainability-related information to their investors, subject to a consultation process.

The government has also committed to consult on economically significant companies disclosing information using future UK SRS, following the creation of the standards.

For more information on our work on UK听SRS, see our听Framework and Terms of Reference for the Development of UK Sustainability Reporting Standards.

To assist with the assessment and endorsement of听IFRS听S1 and听IFRS听S2, and any implementation of resulting UK听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听TAC听is to assess听IFRS听Sustainability Disclosure Standards on a technical basis and provide independent recommendations on endorsement to the Business and Trade Secretary.听TAC听is formed of a chair and members from a range of听relevant professional backgrounds.听More information is available听via the听听and听a news article on 188体育.

TAC鈥檚 operations are supported by the听FRC, including the provision of a secretariat.

罢丑别听TAC听secretariat published a听, which closed on 11 October 2023. Responses are available to read on听. The responses will assist the听TAC听as it develops recommendations on the endorsement of听IFRS听S1 and听IFRS听S2.

Public papers and meetings recordings are available on and demonstrate the TAC鈥檚 progress. It is on track to provide its recommendations in good time.

UK Sustainability Disclosure Policy and Implementation Committee (PIC)

PIC听is formed of UK government and regulator representatives and its main role is to coordinate the implementation of any UK听SRS. The members of the听PIC听will also, as a secondary function, consider whether the endorsement of any听IFRS听Sustainability Disclosure Standard has significant interactions with the remits of their respective organisations.

PIC鈥檚 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)听officials advise the Business and Trade Secretary
• on relevant contextual matters that听DBT听can share with听TAC

PIC听meetings are held in private. However, you can read summary minutes from听PIC听meetings.

Feedback

If you have any questions or comments on this work, you can contact听UK.SRS@businessandtrade.gov.uk