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TAC Public Meeting December 2024 Paper 3: Due process summary
AGENDA PAPER 3
Executive summary
| Date | 05 December 2024 |
|---|---|
| Paper reference | 2024-TAC-030 |
| Project | Technical assessment of IFRS S1 and IFRS S2 |
| Topic | Due process summary |
Objective of the paper
This paper presents a brief summary of the due process followed in the development of the technical assessment and endorsement recommendations in relation to IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and IFRS S2 Climate-related Disclosures (IFRS S2).
Decisions for the TAC
The TAC is asked to tentatively approve the due process summary.
Appendices
- Appendix - Due process summary
This paper has been prepared by the Secretariat for the UK Sustainability Disclosure Technical Advisory Committee (TAC) to discuss in a public meeting. This paper does not represent the views of the TAC or any individual TAC member.
Due process summary
1The TAC's Terms of Reference (ToR)1 require the TAC to follow due process in relation to the development of its endorsement recommendations.
2Alongside the final draft of the technical assessment and endorsement recommendations in relation to IFRS S1 and IFRS S2, the TAC Secretariat are tabling, for tentative approval in this meeting, a brief summary of the due process followed in the development of these recommendations. The appendix includes a copy of the due process summary.
Questions for the TAC
- Does the TAC agree with the brief summary of the due process followed in the development of the technical assessment and endorsement recommendations in relation to IFRS S1 and IFRS S2?
- Does the TAC tentatively approve the due process summary?
Next steps
3A final draft of the due process summary will be tabled at a future public meeting for approval.
Appendix – Due process summary
| Due process steps | TAC's ToR paragraph references | Comments |
|---|---|---|
| Initiate project | ||
| A ministerial letter from DBT is sent to the TAC to commission it to initiate work on the IFRS Sustainability Disclosure Standard. The letter is published on gov.uk and/or the FRC website. | 8, 41 | A commission letter from the Minister of State for Enterprise, Markets and Small Business stating that the TAC can commence its analysis of IFRS S1 and IFRS S2 dated 17/05/2024 was sent to the TAC Chair. It was published on the FRC website on 21/05/2024. |
| The TAC aims to provide an endorsement recommendation by any target date provided by DBT on a best-efforts basis. The target date is published on gov.uk and/or the FRC website. | The target date included in the letter is the end of 2024. | |
| A project plan, including target timeline, is prepared and approved by TAC. The project plan summarises key steps and includes an analysis of assumptions, constraints and risks and the target date. | A project webpage is available on the FRC website. | |
| The project plan was approved at a public meeting on 31/05/2024. | ||
| Technical analysis | ||
| The TAC conducts a rigorous technical analysis of the IFRS Sustainability Disclosure Standard. | 2, 3, 4, 5 | The technical work plan approved at public meeting on 31/05/2024 is available on the FRC website. |
| A technical work plan is prepared and approved by TAC. The technical work plan includes application of assessment approach to the project (identification of technical areas by conducting research and stakeholder outreach activities and initial assessment of those areas) and any contextual information. | Technical papers discussed in public meetings on 31/05/2024, 18/06/2024, 15/07/2024, 03/09/2024, 08/10/2024, 05/11/2024 and 15/11/2024 and TAC's decisions are recorded in summaries of those meetings available on the FRC website. | |
| Technical papers prepared and discussed by the TAC. Technical papers include detailed assessment of priority technical areas listed in technical work plan. | ||
| Contextual information | ||
| The TAC has regard to any contextual information provided by the DBT. The contextual information is published on gov.uk and/or the FRC website. | 11, 41 | The context letter from the DBT dated 20/05/2024 was sent to the TAC Chair. Published on the FRC website on 21/05/2024. |
| Contextual information was considered during the technical analysis and summarised in the final recommendations. | ||
| Further commissions | ||
| The TAC may be commissioned by the DBT to provide further advice on the IFRS Sustainability Disclosure Standards or to support implementation decisions being taken by the DBT or the FCA against UK Sustainability Reporting Standards. Any further commissions are published on gov.uk and/or the FRC website. | 7, 12, 13, 41 | N/A |
| Stakeholder outreach and research activities | ||
| The TAC considers whether it is necessary to publish a call for evidence. | 9 | A call for evidence was issued for three months and comment letters were published on the FRC website. |
| The TAC conducts stakeholder outreach, including with companies and investors, as well as the ISSB, national standard setters and securities regulators. | Stakeholder feedback was included in technical papers and summarised in TAC paper 2024-TAC-027. | |
| The TAC performs research activities. | Research activities are summarised in TAC papers 2024-TAC-004a and 2024-TAC-004b and in monthly monitoring updates. | |
| Project closure | ||
| The TAC votes on whether to include an amendment to the IFRS Sustainability Disclosure Standard and on its endorsement recommendations in a TAC meeting. | 25, 26, 27, 28, 29, 42 | Vote to take place in public meeting on 05/12/2024. |
| The TAC provides its endorsement recommendations to DBT in a report. | ||
| The TAC's report containing its endorsement recommendations, as well as any further advice provided by the TAC, are published on gov.uk and/or the FRC website. | ||
| TAC meetings | ||
| There are a number of requirements in the TAC's ToR relating to meetings, including that: - Meetings are quorate. - Recordings are available on the FRC website within 5 working days. - Agendas and technical papers are agreed by the TAC Chair, circulated to members at least 5 working days in advance and published on the FRC website. - Summaries are approved by the TAC Chair and published on the FRC website within 10 working days. |
24, 30, 32, 33, 36, 38, 39, 40 | The project was discussed in public meetings on 31/05/2024, 18/06/2024, 15/07/2024, 03/09/2024, 08/10/2024, 05/11/2024 and 15/11/2024. |
| Meetings agendas, technical papers, summaries and recordings, are available on the FRC website. | ||
| The meetings complied with due process, with one minor exception: the summary notes for the 05/11/2024 meeting were published within 11 working days, 1 day later than normal. However, the recording for this meeting was made available within the prescribed 5 working days in accordance with the ToR. The extended timeframe for the publication of these summary notes was due to the unplanned addition of an extra meeting on 15/11/2024 to complete discussions on several key areas. Priority was given to preparing for this additional meeting to ensure the TAC had the best opportunity to meet the target date for providing endorsement recommendations. |
Conclusion
Conclusion to be drafted on completion of the project.
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The TAC's ToR are available at the following webpage: https://www.gov.uk/government/publications/framework-for-developing-uk-sustainability-reporting-standards/framework-and-terms-of-reference-for-the-development-of-uk-sustainability-reporting-standards ↩