Featured Product

    UK Authorities Support IFRS Proposal on Sustainability Reporting

    November 10, 2020

    HM Treasury published a joint statement from the UK government and the UK financial regulators in response to the consultation of the IFRS Foundation on a global approach to sustainability reporting. The joint statement represents the views of Department for Business, Energy and Industrial Strategy (BEIS), BoE, Department for Work and Pensions (DWP), FCA, Financial Reporting Council (FRC), HM Treasury, and The Pensions Regulator (TPR). The UK authorities support the approach set out in the consultation paper, which seeks to build on the established work and accumulated knowledge of organizations already operating in this area. The statement recognizes that climate change and sustainability are challenges that extend beyond national borders and that the internationally agreed standards will be helpful.

    This consultation, which closes on December 31, 2020, seeks feedback on a number of matters, including the establishment of a new Sustainability Standards Board (SSB), to sit alongside the IASB within the IFRS Foundation structure. UK authorities state that they believe that the creation of a new board, within the IFRS Foundation structure, would allow the effective exploration, reconciliation, and resolution of ideas and challenges that are relevant to reporting of material sustainability factors (that are most relevant to investors and other market participants) in the first instance and reporting of wider sustainability impact in the longer term. The authorities believe that establishing an SSB alongside the IASB will promote much-needed integration of financial and non-financial reporting, within a common architecture. A transparent and robust governance structure should, in their view, be a pre-requisite for establishing an independent and impartial sustainability reporting standard-setter. For these reasons, the Foundation is very well-placed to lead this conversation and work, and we are grateful that it has done so.

    In the statement, the authorities recognize that climate change and sustainability are challenges that extend beyond national borders and, therefore, demand international solutions. Internationally agreed sustainability reporting standards will help to achieve consistent and comparable reporting on environmental, social, and governance (ESG matters). This, in turn, will help to inform international investment flows to support transitions to a net zero emission economy among other public policy goals. The UK government and UK financial regulators remain committed to implementing the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations in the UK, as set out in the 2019 Green Finance Strategy, in anticipation of the G7 Presidency and as part of the UK’s COP26 Co-Presidency and international leadership on green finance and climate change. Alongside pursuing an ambitious domestic program, the UK intends to play its part in actively supporting the development of global disclosure standards and will look to take forward the domestic proposals in a manner that will inform, and be consistent with, the international standards as they develop and are in time agreed. The statement also mentions that the authorities intend to respond more fully to the IFRS consultation in due course.

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance, Securities, Climate Change Risk, Reporting, TCFD, ESG, Sustainability Standards Board, IFRS, ESG, Sustainability Standards Board, IFRS, Sustainable Finance, BoE, HM Treasury, IASB

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582