Expected introduction of UK Sustainability Reporting Standards

The International Sustainability Standards Board (ISSB) published its first two new standards in June 2023. These are IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information, and IFRS S2: Climate-related Disclosures. To align with this work, the UK is due to introduce UK Sustainability Reporting Standards (SRS), the first two being based on IFRS S1 and IFRS S2. It is expected that a consultation on drafts of these will be launched in the first half of 2025.

Adoption of the UK SRS will be voluntary in the first instance. However, businesses – particularly publicly listed and large companies – should anticipate compliance becoming mandatory. Either way, it would be beneficial for companies to be forward thinking. This will be particularly important for international organisations, with several countries in addition to the UK (including Australia, Canada, China, Hong Kong, and Singapore) integrating ISSB standards into their disclosure frameworks.

There is increasing public focus and expectation in relation to sustainability. Taking a proactive approach is likely to improve public perception, and will also increase investor confidence. Failure to adequately prepare for the introduction of the UK SRS may lead to businesses being left behind and cause reputational damage among stakeholders. Companies already complying with reporting requirements under the Global Reporting Initiative (GRI) and the European CSRD will be well prepared for the introduction of UK SRS. For those wishing to be proactive, the following steps should be considered:

• Conducting materiality assessments

• Voluntarily aligning to disclosures and standards

• Assessing sustainability practices

If you would like to discuss any of the topics in this article and how your business could be affected, get in touch with our team at info@forge-esg.com. 

Jonathan Chibafa

Founder & Chief Legal Officer