On August 2nd 2023, the UK government announced its plans to create the UK Sustainability Disclosure Standards (SDS) for companies to report on sustainability and climate-related risks.
The standards will form the basis for future sustainability reporting legislation and will be based on the recently-published sustainability and climate-related reporting standards issued by the IFRS Foundation's International Sustainability Standards Board (ISSB). The UK SDS are expected to be endorsed in July 2024.
“By using the IFRS Sustainability Disclosure Standards as a baseline, the aim is for the information companies disclose under UK SDS to be globally comparable and decision-useful for investors. The disclosures required by these standards will help investors to compare information between companies, thereby aiding decision making; supporting the efficient allocation of capital, and smooth running of the UK’s capital markets.”
Here are our 3 key takeaways for Sumday advisors:
- A good step in the right direction - the UK government has agreed to support globally aligned reporting on sustainability matters and has chosen to adopt the ISSB's IFRS Sustainability Disclosure Standards. These standards are built upon the foundations of the TCFD Framework, which many jurisdictions are also using to prepare their own standards. The UK SDS is expected to be endorsed in July 2024 - less than a year away!
- Get familiar now - Read our ISSB summary and detailed breakdown on the key sections related to carbon accounting.
- Start the conversation with your clients - if you’re a Sumday advisor, use the partner toolkit to speak to the value of carbon accounting and initiate the first step in preparing their baseline emissions in anticipation of these standards.