The FCA has revealed its timeline for integrating the ISSB’s first two standards into the UK’s sustainability disclosure regulations for public entities.
Scheduled consultations in the first quarter of 2024 signal the regulator’s intent to solidify its policy stance by the conclusion of the year.
This announcement follows the UK government’s declaration earlier this month about its new Sustainability Disclosure Standards (SDS). These standards will primarily draw from the ISSB framework, ensuring deviations only to cater to unique UK scenarios.
The FCA intends to enforce these new disclosure requirements for financial accounting cycles that start on or after 1 January 2025. Official reporting in accordance with these rules will commence from 2026, as confirmed by the FCA in their recent market bulletin.
Furthermore, the FCA announced its plans to simultaneously consult on guidelines detailing their expectations from listed firms regarding transition plan disclosures. In connection with the ISSB’s recent amalgamation of the Task Force on Climate-related Financial Disclosures (TCFD) framework, the FCA took the opportunity to remind stakeholders of its earlier pronouncement. It had conveyed its intention to update the TCFD-affiliated disclosure rules for publicly listed firms to make references to the standards endorsed in the UK by the ISSB.
FCA said, “At the same time as consulting on our policy approach in relation to the ISSB standards, we’ll consult on guidance that will set our expectations for listed companies’ transition plan disclosures.”
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