On 2 August 2023, the Department for Business and Trade (DBT) issued guidance on the UK government’s framework to create UK Sustainability Disclosure Standards (UK SDS) by assessing and endorsing the global corporate reporting baseline of the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB).
The UK government is a strong supporter of the ISSB and plans to make endorsement decisions on the ISSB’s first 2 new standards (IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2: Climate-related Disclosures) by July 2024. To assist with this assessment the UK government has established 2 committees – the UK Sustainability Disclosure Technical Advisory Committee and the UK Sustainability Disclosure Policy and Implementation Committee.
Once endorsed the UK SDS may be referenced in any legal or regulatory requirements for UK entities. Decisions to require disclosure will be taken independently by the UK government, for UK registered companies and limited liability partnerships, and by the FCA for UK listed companies.For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.