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TAC Public Meeting July 2025 Paper 2: TAC Update July 2025
Executive summary
| Date | 8 July 2025 |
| Paper reference | TAC-Update-July-2025 |
| Project | Monitoring |
| Topic | July 2025 General Reporting Update |
Objective of the paper
This paper provides key updates since the update paper published for the July 2025 TAC meeting.
This includes a summary of the ISSB meetings and related developments, in addition to jurisdictional developments in relation to the adoption of IFRS Sustainability Disclosure Standards to date.
The information in this paper is provided as at 27 June 2025 and does not include any developments after this date.
Decisions for the TAC
There are no decisions required. This paper is for information only.
Appendices
Appendix 1 – Jurisdictional developments.
This paper has been prepared by the Secretariat for the UK Sustainability Disclosure Technical Advisory Committee (TAC). It does not represent the views of the TAC or any individual TAC member.
Context
1The objective of this paper is to inform the TAC of international and jurisdictional developments in sustainability-related reporting. It is for information purposes only and does not ask the TAC to make any decisions.
2The TAC will be provided with an update of UK-specific, international and jurisdictional developments on sustainability-related reporting at each of its meetings.
UK developments
3The following paragraph provides a summary of updates from the UK in relation to sustainability-related reporting since the last update paper published for the June 2025 TAC meeting.
4On 25 June, the Department for Business and Trade (DBT) published an Exposure Draft for UK Sustainability Reporting Standards (UK SRS S1, aligned with IFRS S1; and UK SRS S2, aligned with IFRS S2). The Draft contains a number of proposed amendments to be made to IFRS S1 and IFRS S2 for use in the UK, including four from the TAC's endorsement recommendations. These relate specifically to removing the transition relief in IFRS S1 that permits delayed reporting in the first year, the extension of the transition relief in IFRS S1 which permits a climate-first approach, the removal of the requirement in IFRS S2 to use the Global Industry Classification Standard (GICS), and the removal of the 'effective date' clauses in both Standards (with input from the Policy and Implementation Committee (PIC)). There are a further two amendments from the PIC, including amending the instruction regarding to SASB materials in IFRS S1 and IFRS S2 from 'shall refer to and consider' to 'may refer to and consider', and relating to the treatment of transition reliefs to facilitate use of the reliefs on a voluntary basis. Consultation on the Exposure Draft is open until 17 September.
5DBT also launched a consultation on the proposal to introduce greater regulatory oversight of third-party assurance services for sustainability-related financial disclosures on 25 June. The consultation is open until 17 September.
6The Department for Energy Security and Net Zero (DESNZ) launched a consultation to understand views on climate-related transition plan requirements on 25 June, and this consultation will also be open until 17 September.
7On 29 May, the Financial Reporting Council (FRC) proposed adopting the International Auditing and Assurance Standards Board (IAASB)'s International Standard on Sustainability Assurance (ISSA 5000). This would be for use on a voluntary basis by assurance providers in the UK. A public consultation on the proposal is open until 31 July 2025.
International Sustainability Standards Board developments
8The following paragraphs provide a summary of updates from the International Sustainability Standards Board (ISSB) since the last update paper published for the June 2025 TAC meeting.
9On 18 June, the ISSB met and discussed the enhancement of the SASB Standards, including the draft Exposure Draft and Basis for Conclusions on proposed amendments to the SASB Standards.
10The IFRS Foundation has published a set of 17 jurisdictional profiles exploring each jurisdiction's progress towards their stated target of alignment with the ISSB Standards. The profiled jurisdictions are: Australia, Bangladesh, Brazil, Chile, Ghana, Hong Kong SAR, Jordan, Kenya, Malaysia, Mexico, Nigeria, Pakistan, Sri Lanka, Chinese Taipei, Tanzania, Türkiye and Zambia. The publication demonstrates that 12 of the 17 propose, or have published, standards which are either fully or functionally aligned with the ISSB Standards. Three propose standards which incorporate a “significant portion” of the ISSB Standards, and one is considering permitting the use of ISSB Standards.
11The ISSB has released an Update and podcast summarising the June meeting. The podcast also covers the launch of the jurisdictional profiles and the forthcoming Exposure Draft on enhancements to the SASB Standards.
12The IFRS Foundation has launched four new e-learning modules to support companies reporting against IFRS S1 and IFRS S2. The modules are free and available on the IFRS Sustainability Knowledge Hub.
13On 23 June the IFRS Foundation published new guidance on transition plans, building on disclosure-specific materials developed by the Transition Plan Taskforce (TPT) before it was assumed by the IFRS Foundation in 2024. Specifically, the guidance supports entities applying IFRS S2, which does not require an entity to create a transition plan but does require an entity to provide material information about its sustainability-related risks and opportunities, which includes information about its climate-related transition.
14The ISSB participated in and hosted a number of events for London Climate Action Week (21-29 June), including:
- Partnering with the London Stock Exchange Group on an event, Climate transition plans – Navigating the pathway ahead on 25 June.
- Partnering with Deloitte and Chapter Zero on an event, Accelerating the integration of climate-related matters into corporate and investment decision-making—A discussion for non-executive directors, on 26 June.
- Speaking at the TNFD plenary on 23 June.
- Speaking at a TISFD event, Educational session on social disclosures supporting the transition, on 24 June.
- Speaking at the Bloomberg Sustainable Business Summit on 26 June.
- Speaking at an EY event, ISSB is coming to the UK—Perspectives from standard-setters, preparers and users, on 26 June.
- Speaking at an event hosted by TNFD, GRI and the University of Oxford, Assessing and measuring the financial materiality of nature-related issues, on 27 June.
15On 27 June, the ISSB's consultation period on its Exposure Draft Amendments to Greenhouse Gas Emissions Disclosures, relating to proposed amendments to IFRS S2, closed. The ISSB website is currently displaying 170 responses, including comment letters from the TAC, Financial Reporting Council (FRC), and a joint submission from the FRC, Australian Accounting Standards Board (AASB), and Sustainability Standards Board of Japan (SSBJ).
Other international body developments
16The following paragraphs provide a summary of updates from other international bodies.
17The Greenhouse Gas Protocol has published an update on its work to update its Scope 2 Standard. The update focuses on its proposal to update inventory requirements and to develop a complementary impact metric on marginal emissions impact. Its Scope 2 Technical Working Group plans to hold a public consultation later this year on the proposed updates.
18The Basel Committee on Banking Supervision has published a voluntary framework for disclosing climate-related financial risks in the banking sector. The voluntary nature of the framework has elicited some criticism from groups such as Finance Watch and Public Citizen.
19The Taskforce on Nature-related Financial Disclosures (TNFD) has announced that it will issue its recommendations for improve access to nature-related data, and launch a pilot testing programme, during COP30 in November.
20The Global Reporting Initiative (GRI) has launched its Sustainability Taxonomy, which companies can use to submit their sustainability reports to GRI in digital, machine-readable format.
21For companies who report using both GRI Standards and the ISSB's Standards, the standard setting body of GRI, the Global Sustainability Standards Board (GSSB), have confirmed (subject to certain conditions) that the GHG emissions disclosure requirements in IFRS S2 Climate-related Disclosures can be used to meet the corresponding requirements in GRI 102: Climate Change 2025. Further details can be found in GRI 102 and IFRS S2: Statement on reporting on both standards and equivalence for IFRS S2 on GHG Emissions Disclosures.
Jurisdictional developments
22The following paragraphs provide a summary of updates from other jurisdictions in relation to sustainability-related reporting since the last update paper published for the June 2025 TAC meeting.
European Union
23In its response to the ISSB's proposed amendments to IFRS S2, the European Financial Reporting Advisory Group (EFRAG) has tentatively recommended in its draft comment letter that the proposed reliefs "should be temporary, to be reviewed reflecting possible changes in reporting practice and evolution of methodologies".
24The lead rapporteur of the omnibus package to simplify sustainability reporting requirements in the EU, Jörgen Warborn, has proposed raising the thresholds for the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), to companies with over 3000 employees and €450M net turnover. This goes beyond the European Commission's proposal of raising the threshold to companies with over 1000 employees.
25On 24 June, the European Parliament Legal Affairs Committee (JURI)'s shadow rapporteurs met to debate the omnibus text. JURI is expected to finalise its position by October 2025.
Appendix 1 – Jurisdictional developments
G20 jurisdictions committed to adopting IFRS Sustainability Disclosure Standards
Table 1 summarises the status of G20 jurisdictions publicly committed to adoption or other use of the IFRS Sustainability Disclosure Standards.
Table 1: G20 jurisdictions (countries and regional bodies) summary as at 27 June 2025.
| Jurisdiction | Current status | Both IFRS S1 & IFRS S2? | Reporting commencing from | Companies in scope |
|---|---|---|---|---|
| African Union: Ghana | Endorsed | Both | 2027-2028 | Listed & unlisted |
| African Union: Kenya | Consultation closedPublished roadmap | Both | 2025-2027 | Banks |
| African Union: Morocco | Publicly committed | - | - | - |
| African Union: Nigeria | Endorsed | Both | 2028-2030 | Listed & unlisted |
| African Union: Rwanda | Consultation closed | Both | 2025-2026 | Listed & unlisted |
| African Union: Tanzania | Endorsed | Both | 2025 | Listed & unlisted |
| African Union: Uganda | Endorsed | Both | 2026-2028 | Listed |
| African Union: Zambia | Endorsed | Both | 2025 | Listed |
| African Union: Zimbabwe | Publicly committed | - | - | - |
| Australia | Endorsed | Both: IFRS S1-voluntary | 2025 | Listed & unlisted |
| Brazil | Endorsed | Both: IFRS S2 - mandatory | 2026 | Listed |
| Canada | Endorsed | Both | 2025 | To be confirmed |
| China | Consultation open | Both (but uses a double materiality approach) | 2026-2030 | Listed & unlisted |
| India | Consultation closed | IFRS S2 only | 2025-2029 | Banking & finance |
| Indonesia | Consultation closed | Both | 2027 | To be confirmed |
| Japan | Endorsed | Both | - | Listed |
| Mexico | Consultation closed | Both | 2026 | Listed and private |
| South Korea | Consultation closed | Both | 2026-2030 | Listed |
| Turkey | Endorsed | Both | 2024 | Regulated financial institutions & large companies |
Other jurisdictions committed to adopting IFRS Sustainability Disclosure Standards
Table 2 summarises the status of non-G20 jurisdictions publicly committed to adoption or other use of the IFRS Sustainability Disclosure Standards.
Table 2: Other jurisdictions summary as at 27 June 2025.
| Jurisdiction | Current status | IFRS S1 & IFRS S2? | Reporting commencing from | Companies in scope |
|---|---|---|---|---|
| Bangladesh | Endorsed | Both | 2024-2027 | Banking & finance |
| Bolivia | Endorsed | Both | 2027 | Listed & unlisted |
| Chile | Endorsed | Both | 2026 | Listed |
| Costa Rica | Endorsed | Both | 2025-2026 | Listed & unlisted |
| Hong Kong | Endorsed | Both | 2025 | Listed |
| Jordan | Endorsed | Both: IFRS S1 – voluntary FRS S2-Mandatory | 2027 | All entities listed in the ASE20 index |
| Malaysia | Endorsed | Both | 2025-2027 | Listed & large unlisted |
| Panama | Publicly committed | - | - | - |
| Pakistan | Endorsed | Both | 2025-2027 | Listed & unlisted public interest companies |
| Philippines | Consultation closed | Both | 2025 | Listed |
| Qatar | Consultation closed | Both | 2026 | Listed |
| Singapore | Endorsed | IFRS S2 only | 2025-2027 | Listed |
| Sri Lanka | Endorsed | Both | 2025 | To be confirmed |
| Switzerland | Consultation closed - amending the Ordinance on Climate Disclosures | Both | 2026 | Listed & unlisted |
| Taiwan | Endorsed | Both | 2026-2028 | Listed |
| Thailand | Endorsed | Both | 2026-2030 | Listed |
G20 jurisdictions not publicly committed to adopting IFRS Sustainability Disclosure Standards
Table 3 summarises the status of G20 jurisdictions not publicly committed to adoption or other use of the IFRS Sustainability Disclosure Standards.
Table 3: G20 jurisdictions (countries and regional bodies) not publicly committed to adopting ISSB as at 27 June 2025.
| Jurisdiction | Current status | Topics | Reporting commencing from | Companies in scope |
|---|---|---|---|---|
| Argentina | Unconfirmed | - | - | - |
| European Union (EU)* | European Sustainability Reporting Standards (ESRS) & Corporate Sustainability Reporting Directive (CSRD) | Ten topical standards including a general and climate change standard | 2024-2028 | Listed & unlisted |
| Russia | Unconfirmed | - | - | - |
| Saudi Arabia | Unconfirmed | - | - | - |
| South Africa | Unconfirmed | - | - | - |
| United States of America | California Corporate Climate Accountability Act (SB 253 and SB 261) - adopted | California: 2026 | California: Listed & unlisted | |
| New York Climate Corporate Data Accountability Act (SB 3456) - bill | New York: 2027 - 2028 | New York: Listed & unlisted | ||
| Colorado Corporate Climate Accountability Act (House Bill 25-119) - bill | Colorado: 2028 - 2031 | Colorado: Listed & unlisted |
- Although European Sustainability Reporting Standards are required to be used by EU member states, the IFRS Foundation and EFRAG issued interoperability guidance in 2024 illustrating the high level of alignment achieved between ISSB Standards and ESRS.