The UK Sustainability Disclosure Technical Advisory Committee (TAC), supported by the Financial Reporting Council (FRC), has recommended the endorsement of two pioneering IFRS Sustainability Disclosure Standards for adoption within the UK.
This recommendation, targeted at the Secretary of State for Business and Trade, supports the implementation of IFRS S1 and IFRS S2 standards, which focus on general sustainability-related financial information and climate-related disclosures, respectively.
Originally issued by the International Sustainability Standards Board in June 2023, these standards have undergone rigorous technical assessment by the TAC, concluding that they would significantly benefit the public good in the UK over the long term. The TAC’s review, initiated by a commission from the former Minister for Enterprise, Markets, and Small Business in May 2024, has led to the proposal of minor modifications.
These include an extension of the ‘climate first’ reporting relief from one year to two, alongside a call for the UK Sustainability Disclosure Policy and Implementation Committee to devise specific guidance for implementing IFRS S1. This guidance aims to harmonise the new standards with existing UK sustainability-related disclosure requirements.
The TAC’s findings and recommendations were formally agreed upon during a public meeting on 5 December 2024. Sally Duckworth, Chair of the TAC, emphasised the extensive evaluation process undertaken by the committee: “The TAC has conducted an extensive and thorough review over several months, carefully evaluating the IFRS Sustainability Disclosure Standards.
The FRC’s report, as presented to the Secretary of State, recommends that the UK endorse these standards to reinforce its leadership in sustainability reporting.
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