The UK government finalised new sustainability reporting standards to support long-term value creation for businesses and strengthen investor confidence, accelerating progress towards the UK’s net-zero ambition.
CIMA welcomed the new UK Sustainability Reporting Standards (UK SRS 1 and 2), which look to provide a “clear and practical framework” for reporting material information about sustainability-related risks and opportunities, a news release said.
“The UK has long led the way in sustainability disclosure, and CIMA has championed this progress for many years through its leadership on integrated reporting and more recently through its active support to the UK Sustainability Disclosure Technical Advisory Committee,” Andrew Harding, FCMA, CGMA, chief executive–Management Accounting at the Association of International Certified Professional Accountants, said in the release.
According to the UK government:
- UK SRS 1, General Requirements for Disclosure of Sustainability-Related Financial Information, requires entities to disclose requirements on general sustainability-related risks and opportunities.
- UK SRS 2, Climate-Related Disclosures, sets out requirements for disclosing climate-related risks and opportunities.
International Financial Reporting Standards S1 and S2, on which UK SRS 1 and 2 are based, are designed to be interoperable with the European Sustainability Reporting Standards, providing a coherent global baseline for sustainability reporting that can be tailored to jurisdictional needs.
“[The standards] raise the bar on transparency and data quality, ultimately driving more confident and informed decision-making for investors, whilst creating greater value for [businesses] by helping them refine their goals and planning, and ensuring they are well positioned to meet their sustainability targets,” Jeremy Osborn, FCMA, CGMA, FCPA (Australia), global head of sustainability at the Association of International Certified Professional Accountants, said in the release.
The standards represent a significant step towards improving accountability, transparency, and trust in sustainability-related financial reporting, the CIMA release said.
“These standards will go a long way towards building trust in corporate reporting and improving decision-making among business leaders and investors,” Harding said.
The standards are available for voluntary use, according to guidance from the UK government.
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