The UK Sustainability Disclosure Technical Advisory Committee (TAC), a government-mandated body, has released its recommendations to endorse the IFRS Foundation’s International Sustainability Standards Board’s (ISSB) climate and sustainability reporting standards for use in the UK.

Published by the Financial Reporting Council (FRC), these recommendations align with the UK Green Finance Strategy introduced by the previous government, which committed to evaluating the IFRS sustainability and climate-related reporting standards upon their release. The IFRS issued its general sustainability (IFRS S1) and climate (IFRS S2) reporting standards in June 2023. Following their release, the International Organization of Securities Commissions (IOSCO) encouraged regulators worldwide to integrate the standards into their sustainability reporting frameworks, with over 30 jurisdictions, accounting for 57% of global GDP, signaling progress toward adoption.

In May 2024, the UK government tasked the TAC with providing advice on endorsing these standards. While the TAC supports the adoption of IFRS S1 and S2, it has proposed some modifications. One key recommendation is to extend the ISSB’s “climate-first” relief period, which gives companies additional time to disclose certain sustainability risks. The TAC suggests extending this relief from one year to two years, allowing organizations to prioritize climate-related reporting before addressing other sustainability issues.

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