UK Sustainability Reporting 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 are intended to help investors to compare information between companies, supporting 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 and sees its work as consistent with the UK government’s aim to make the UK a global centre for sustainable finance. In November 2024, the press notice accompanying the Chancellor’s Mansion House speech spoke about our ambition to “deliver a world-leading sustainable finance framework”, including consulting “on economically significant companies disclosing information using future UK Sustainability Reporting Standards”.

The UK government isconsulted now consulting on the exposure drafts of the UK versions of IFRS S1 and IFRS S2 – respectively called UK SRS S1 and UK SRS S2. The consultation isran openfrom until25 June 2025 to 17 September 2025, alongside a consultation on the development of an oversight regime for assurance of sustainability-related financial disclosures.

Following this consultation process, the UK government willis analysing responses and is aiming to publish finalised versions of UK SRS S1 and UK SRS S2 for voluntary use laterin thisearly year.2026. Subsequently, the government and the Financial Conduct Authority (FCA) will consider whether to introduce requirements for certain UK entities to report against these standards. The FCA will consult shortly on amendments to the UK Listing Rules. The Department for Business and Trade (DBT) has also written to the FCA (PDF, 179 KB, 2 pages) regarding next steps and implementation matters, including stakeholder views on transitional relief provisions.

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 provided its final report and recommendations in December 2024. It recommended that IFRS S1 and IFRS S2 are endorsed for UK use, with some minor amendments. The UK government has reflected the TAC’s recommendations in its consultation on the exposure drafts of UK SRS S1 and UK SRS S2. You can read the report in full on the FRC website.

The TAC secretariat published a call for evidence on IFRS S1 and IFRS S2. This call for evidence and responses to it are available to read on the FRC website.

Public papers and meetings recordings are available on the FRC website.

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

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

Feedback

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