The UK’s department for Business and Trade has published the government’s finalised Sustainability Reporting Standards, which mandates corporate disclosure of sustainability rated risks.
The second set of regulations launched simultaneously targets climate related risks specifically, both physical risks and transition-related.
The standards are closely aligned with the International Sustainability Standards Board, the replacement for the Taskforce for Climate related Financial Disclosures (TCFD) reporting standard.
One such area of disclosure in the newly released standards was requiring that an entity shall disclose quantitative and qualitative information about how climate-related risks and opportunities have affected its financial position, financial performance and cash flows for the relevant reporting period.
James Alexander, chief executive of the UK Sustainable Investment and Finance Association, called for greater clarity on how the standards can become mandatory for in-scope companies as part of the government’s Modernising Corporate Reporting program later this year.
Alexander says: “An efficient transition from TCFD-aligned to SRS-aligned reporting for companies over the coming years will bring tangible benefits to both investors and reporting organisations.”
In November, it was reported that UK public sector bodies will have to complete detailed climate disclosures to give a clearer picture of each organisation’s impact and how they are managing climate-related risks.