· 2 min read
illuminem summarises for you the essential news of the day. Read the full piece on Forbes or enjoy below:
🗞️ Driving the news: The UK government has released a draft version of its Sustainability Reporting Standards (UK SRS S1 and S2), aligning with international ISSB standards while tailoring them to national law
• The proposed standards focus on climate-related risks and greenhouse gas disclosures, with a consultation period open until 17 September
• Final rules are expected in December 2025, making the UK among the few jurisdictions advancing ESG reporting while others reconsider
🔭 The context: The UK began sustainability reporting requirements in 2022, following the global release of the ISSB standards in 2023
• The IFRS-based ISSB framework includes S1 (general sustainability disclosures) and S2 (climate-specific data)
• While many countries remain cautious about adopting stricter rules, the UK is pursuing a phased approach, balancing ambition with regulatory flexibility through six proposed amendments
🌍 Why it matters for the planet: By adopting robust, mandatory sustainability standards, the UK aims to support its goal of becoming a “clean energy superpower” and to protect its economy from climate-related risks
• The standards promote transparency and accountability in corporate climate strategy, a key element in aligning finance and industry with net-zero goals
• However, the effectiveness will hinge on enforcement and clarity, particularly around Scope 3 emissions and industry-specific disclosures
⏭️ What's next: The UK Department for Business and Trade is collecting feedback via 20 consultation questions
• Key amendments include eliminating early reporting “transition relief,” deferring Scope 3 emissions reporting, and offering companies flexibility on classification and disclosure tools
• Stakeholders have until 17 September to respond
• Final standards will be published by December 2025, with phased implementation likely to begin in 2026
💬 One quote: “Making the transition to an economy that is climate resilient and sustainable is essential for long-term economic growth,” – UK Department for Business and Trade draft statement
📈 One stat: Over 168 jurisdictions globally use IFRS financial standards, but the UK is among the first to fully translate ISSB sustainability standards into national law
See on illuminem's Data Hub™ the sustainability performance of UK-based reporting companies like Unilever, and Tesco
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