Legal & Regulatory News

UK FCA upcoming ISSB consultation (listed companies).

On 10 August 2023, the Financial Conduct Authority (FCA) published its Primary Market Bulletin 45 – highlighting the FCA’s support for the International Sustainability Standards Board (ISSB) Sustainability Disclosure Standards – IFRS S1 and IFRS S2. The FCA announced plans in 2024 for a consultation on whether to update their Task Force on Climate-related Financial Disclosures (TCFD)-aligned disclosure rules for listed companies to instead refer to the UK-endorsed ISSB standards.

The FCA notes that the ISSB standards are built upon the TCFD, with IFRS S2 aligned to the four core recommendations and eleven recommended disclosures published by the TCFD. Although the ISSB standards are not to replace the TCFD disclosure framework immediately, the FCA encourage listed companies to prepare through three key steps: -

• continue to improve reporting in line with climate-related disclosure rules;
• engage early with both the IFRS S1 and IFRS S2, and consider reporting on a voluntary basis as a means to build familiarity with the ISSB standards; and
• engage with the UK Sustainability Disclosure Technical Advisory Committee consultation on the UK endorsement of the IFRS – set to close 11 October 2023.

The FCA also plan on consulting on guidance that sets out expectations for listed companies’ transition plan disclosures – developing guidance with reference to the final outputs from the Transition Plan Taskforce.

Click here to read the FCA Primary Market Bulletin 45.

Click here to read the IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information.

Click here to read the IFRS S2: Climate-related disclosures.

Click here to read the UK Sustainability Disclosure Technical Advisory Committee consultation.