The U.K. government has unveiled plans to create sustainability disclosure standards in its bid to enhance sustainability and climate-related risk reporting.
In an August 2 announcement, the U.K.’s Department for Business and Trade (DBT) revealed that the new standards will be based on recent guidance from the International Sustainability Standards Board (ISSB), in order to ensure that U.K. company disclosures are globally comparable and useful for investors.
The DBT stated that U.K. rules would divert from the global baseline only if absolutely necessary for U.K.-specific matters.
The Sustainability Disclosure Standards (SDS) will form the basis of future U.K. legislation or regulation for companies to report on risks and opportunities relating to sustainability and climate matters.
The Secretary of State for Business and Trade is set to consider the endorsement of ISSB standards to create U.K. sustainability disclosure standards by July 2024.
Decisions on the need for disclosure will be taken independently by the U.K. government, for U.K. registered companies and limited liability partnerships, and by the Financial Conduct Authority (FCA) for U.K. listed companies.