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TAC Public Meeting January 2025 Paper 4: Due process summary
UK Sustainability Disclosure Technical Advisory Committee
AGENDA PAPER 4
Executive summary
| Key | Value |
|---|---|
| Date | 14 January 2025 |
| Paper reference | 2025-TAC-032 |
| 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 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.
2Following the approval of the final draft of the technical assessment and endorsement recommendations in relation to IFRS S1 and IFRS S2 in its December 2024 meeting, the TAC tentatively approved a brief summary of the due process followed in the development of these recommendations.
3The report on the technical assessment and endorsement recommendations was submitted to the Department for Business and Trade (DBT) and published on the FRC website on 18 December 2024.
4The TAC Secretariat are tabling for approval in this meeting, the updated 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 approve the due process summary?
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 and is available on the FRC website. | |
| Technical analysis | ||
| The TAC conducts a rigorous technical analysis of the IFRS Sustainability Disclosure Standard. | 2, 3, 4, 5 | The technical work plan was approved at a public meeting on 31/05/2024 and 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 were discussed in public meetings on 31/05/2024, 18/06/2024, 15/07/2024, 03/09/2024, 08/10/2024, 05/11/2024, 15/11/2024 and 05/12/2024 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. It was 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 | As at 14/01/2025, the TAC has not been given any further commissions. |
| 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 is 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 | Votes took place in the public meeting on 05/12/2024. |
| The TAC provides its endorsement recommendations to DBT in a report. | The report on the technical assessment and endorsement recommendations was submitted to the DBT and published on the FRC website. | |
| The TAC's report containing its endorsement recommendations, as well as any further advice provided by the TAC, is 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.
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, 15/11/2024 and 05/12/2024.
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. The recording for this meeting, however, was available within 5 working days in accordance with the ToR. The summary notes were published within 11 working days, due to priority being given to preparing for the additional 15/11/2024 meeting. Prioritising preparing for this extra meeting gave the TAC the best chance of meeting the target date to provide the endorsement recommendations.
Conclusion
Overall, and notwithstanding the minor exception relating to the publication of the summary notes for the 05/11/2024 meeting, the technical assessment of IFRS S1 and IFRS S2 complied with due process.
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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 ↩