ICAS says new UK Sustainability Reporting Standards must go further

Fiona Donnelly CA, Director of Sustainability at ICAS, said:   

“The publication of the finalised UK Sustainability Reporting Standards marks a significant milestone. We welcome the UK Government’s decision to endorse these, which are closely based on the respective standards issued by the International Sustainability Standards Board (ISSB).

“Alignment with the ISSB standards strengthens the UK’s global competitiveness and supports access to international capital markets by improving transparency and comparability across the 40 jurisdictions in the process of adopting these international standards. It’s also encouraging that the government has expressed its preference for future amendments to be issued by the ISSB, rather than through UK-specific changes, to help preserve ongoing global consistency and comparability. 

“While this is a positive step in the right direction, we still think that the UK SRS should go further. More comprehensive and holistic reporting would be achieved by expanding these standards to include reporting on the impact of organisations on people and the planet. 

"A ‘double materiality’ approach, long championed by ICAS and embraced in Europe despite the recent simplification measures to reporting, would therefore better serve the needs of multiple stakeholders and support the long-term public interest. 

“It’s disappointing that the standards no longer specify how long the reliefs for non-climate reporting and Greenhouse Gas Scope 3 reporting will apply. We appreciate that these topics are complex and rely on reporters obtaining third-party data, but these reliefs may be misused and result in incomplete and less useful disclosures. We note that regulatory and other mechanisms can determine the application of these reliefs, so we’ll be watching this closely. 

“We also look forward to the conclusion of the separate consultation on transition plans, given the crucial role that impact‑focused disclosures play in charting credible pathways to a more sustainable future. 

“2026 is set to be a milestone year for sustainability reporting in the UK. Alongside the Financial Conduct Authority’s current consultation on applying the UK SRS to issuers, we also expect the Department for Business and Trade’s forthcoming consultation on Modernising Corporate Reporting to raise important questions about the future of corporate disclosures. 

“ICAS will continue to advocate for disclosure requirements that are proportionate, decision‑useful and interoperable with international regimes.”