UK Sustainability TAC issues final recommendations
News types: Codes and Standards Announcements
Published: 18 December 2024
The Financial Reporting Council (FRC), in its role as the Secretariat to the UK Sustainability Disclosure Technical Advisory Committee (the TAC), has published the Committee’s final recommendations to the Secretary of State for Business and Trade, recommending endorsement of the first two IFRS Sustainability Disclosure Standards for use in the UK.
The TAC received a commission in May 2024 from the then Minister for Enterprise, Markets and Small Business to provide advice on the endorsement of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, as issued by the International Sustainability Standards Board in June 2023.
The TAC’s technical assessment of both standards has concluded that the creation of UK Sustainability Reporting Standards would support long-term public good in the UK.
In advising endorsement, the TAC has also recommended minor amendments to IFRS S1 and IFRS S2. These include extending the 'climate first' reporting relief from one to two years and suggesting that the UK Sustainability Disclosure Policy and Implementation Committee develop guidance on implementing IFRS S1 to clarify how entities can align this standard with existing sustainability-related disclosure requirements under the current UK legal framework.
The recommendations were discussed and agreed at a public meeting of the TAC on 5 December 2024.
Sally Duckworth, Chair of the UK Sustainability Disclosure TAC, said:
"The TAC has conducted an extensive and thorough review over several months, carefully evaluating the IFRS Sustainability Disclosure Standards. Our report, as presented to the Secretary of State, recommends that the UK endorse these standards to reinforce its leadership in sustainability reporting.
While we endorse their use, we have proposed minor amendments and requested additional guidance to ensure practical and effective implementation. This is a crucial step in aligning UK businesses with global reporting practices, promoting transparency, and supporting the transition to a sustainable economy."