FRC sets out recommendations for the sustainability assurance market
News types: Publications
Published: 5 February 2025
The Financial Reporting Council (FRC) has today published the final report from its market study into the assurance of sustainability reporting. The 2024 study found that while the UK’s market for the assurance of sustainability reporting is functioning well, there are concerns over quality consistency amid growing demand.
In the report, the FRC has recommended three key actions to support the market’s development:
- Establish a clear UK policy framework for sustainability assurance that provides medium-term certainty for providers and reporters, supports investment, and aligns with international frameworks where appropriate.
- Create a unified regulatory regime that consolidates standard setting, oversight, enforcement, and market monitoring to maximise certainty for companies, providers, and investors.
- Improve the calibre of available information on the quality of sustainability assurance to support how the assurance market functions.
The FRC’s Executive Director of Regulatory Standards, Mark Babington, said:
“This report provides us with a clearer picture of the UK’s rapidly developing sustainability assurance market which companies, assurance providers and investors are currently navigating, as reporting expectations continue to develop in this important space.
The findings provide a baseline understanding, that we will continue to build on, so we are best placed to support our stakeholders in this market as demand continues to grow.”
The FRC will continue to provide technical expertise to the Government as it considers the UK’s policy position and any appropriate regulatory framework for sustainability assurance.