The UK government has announced its decision to adopt the baseline standards of the International Sustainability Standards Board.
The UK was one of the first major economies to make climate disclosures mandatory for listed companies.
The standards will form the basis of a new ‘UK Sustainability Disclosure Standards (UK SDS)’. The UK had used standards from the Task Force on Climate-related Financial Disclosures (TCFD), which formed the basis of the ISSB norms.
These will now be changed so that companies who report on their climate disclosures will need to report using the ISSB.
“UK-endorsed standards will only divert from the global baseline if absolutely necessary for UK-specific matters,” the ministry said in a statement.
The Business Ministry said it will publish its own version of the global standards ready for use by July 2024.
The European Union will have its own rules as authorities globally seek to crack down on greenwashing, or companies exaggerating their climate-friendly credentials.
Under the rules, firms will face more pressure to publicly disclose their impact on the climate, including on their Scope 3 emissions – which covers the products or services they sell.
Keep up with changing regulations
As climate disclosure regulations change, it can be difficult for businesses to keep up.
Businesses need to stay ahead to be prepared for the future of climate disclosures.
How can businesses do this?
At ClearVUE.Business, our team of experts keep updated on upcoming disclosures to guide you on actionable plans to address your climate impact. Our technology, ClearVUE.Zero, can generate reports quickly and easily to measure your climate efforts.
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