The standards will utilise the ISSB framework as a baseline, only diverting from it “if absolutely necessary for UK specific matters”.
The UK government has unveiled its upcoming corporate sustainability disclosure framework, slated for July 2024, which will be underpinned by the International Sustainability Standards Board’s (ISSB) climate and general sustainability standards.
The Sustainability Disclosure Standards (SDS) will utilise the ISSB framework as a baseline, only diverting from it “if absolutely necessary for UK specific matters”, according to the official statement.
Alexis Normand, Co-Founder and CEO of carbon accounting firm Greenly, said: “Just like financial reporting, the hope is that reporting on sustainability issues will be taken into consideration when making resource-allocation decisions.”
“Investment managers are often judged on their ability to provide good risk-adjusted returns. The adoption of these standards would help allocators of capital to make even more well-informed decisions moving forward when it comes to finding businesses that are best suited to providing long-term value.”
The UK government has further established two committees, the Sustainability Disclosure Technical Advisory Committee and the Sustainability Disclosure Policy and Implementation Committee (PIC), to assist with the implementation of the ISSB’s standards within the SDS.
“Decisions to require disclosure will be taken independently by the UK government, for UK registered companies and limited liability partnerships, and by the Financial Conduct Authority (FCA) for UK-listed companies,” the statement said.
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