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TAC Public Meeting January 2026 Paper 2: TAC Update January 2026
**UK Sustainability Disclosure Technical Advisory Committee**
**AGENDA PAPER 2**
## Executive summary
<div class="table-container" markdown="1">
| | |
|:------------------|:-------------------------------------|
| **Date** | 19 January 2026 |
| **Paper reference** | TAC-Update-Jan-2026 |
| **Project** | Monitoring |
| **Topic** | January 2026 General Reporting Update |
</div>
### Objective of the paper
This paper provides key updates since the update paper published for the December 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 5 January 2026 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
<a class="section__global-number" href="#paragraph-1" id="paragraph-1">1</a>The 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.
<a class="section__global-number" href="#paragraph-2" id="paragraph-2">2</a>The 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
<a class="section__global-number" href="#paragraph-3" id="paragraph-3">3</a>The following paragraphs provide a summary of updates from the UK in relation to sustainability-related reporting since the last update paper published for the December 2025 TAC meeting.
<a class="section__global-number" href="#paragraph-4" id="paragraph-4">4</a>The UK Sustainable Investment and Finance Association (UKSIF) has published results from a survey of 20 of its members, which indicate the importance they place on climate and transition risk data (on average, 8.1 out of 10) and sustainability reports (on average, 7.8 out of 10). UKSIF has concluded that there is strong evidence to support the adoption of the ISSB-aligned UK Sustainability Reporting Standards (UK SRS).
## International Sustainability Standards Board & other international body developments
<a class="section__global-number" href="#paragraph-5" id="paragraph-5">5</a>The following paragraphs provide a summary of updates from the ISSB since the last update paper published for the December 2025 TAC meeting.
<a class="section__global-number" href="#paragraph-6" id="paragraph-6">6</a>The ISSB met on 10 December 2025. Discussions covered the due process for moving the Biodiversity, Ecosystems and Ecosystems Services (BEES) research project to a standard-setting project. It was decided that the next due process step would be to publish an exposure draft on BEES, forgoing a discussion paper. The potential need for a consultative group on standard-setting was discussed and decided against. Further research findings on the Human Capital research project were also discussed, focussing on the necessity and feasibility of standard-setting, but no decisions were made.
<a class="section__global-number" href="#paragraph-7" id="paragraph-7">7</a>In December the ISSB issued targeted amendments to greenhouse gas (GHG) emissions disclosure requirements in IFRS S2, in response to feedback received during its consultation earlier in 2025. The amendments:
* clarify that an entity is permitted to limit measurement and disclosure of Scope 3 Category 15 GHG emissions to financed emissions as defined in IFRS S2;
* permit the use of other classification systems besides the Global Industry Classification Standard (GICS) for disaggregating information about financed emissions;
* clarify the availability of the jurisdictional relief from using the GHG Protocol Standard, if only part of an entity is required to use a different method for measuring GHG emissions; and
* introduce a jurisdictional relief from using global warming potential values from the latest IPCC Assessment Report for converting GHG emissions.
<a class="section__global-number" href="#paragraph-8" id="paragraph-8">8</a>The December ISSB Update is now available, as well as the latest episode of the ISSB podcast which looks back at the three focus areas for the ISSB in 2025: progress in global adoption of the Standards; implementation support; progress towards a global baseline.
<a class="section__global-number" href="#paragraph-9" id="paragraph-9">9</a>The World Business Council for Sustainable Development (WBCSD) has launched a Nature Action Portal to help organisations to identify relevant metrics and targets to disclosure nature-related information. Currently, it provides guidance for the agri-food, forest products, energy, built environment and pharmaceutical sectors, as well as cross-cutting guidance on water-related reporting.
<a class="section__global-number" href="#paragraph-10" id="paragraph-10">10</a>GRI has published four updated draft standards on workers' rights: Workers in Business Relationships (GRI 414); Forced Labour (GRI 409); Child Labour (GRI 408); and Freedom of Association and Collective Bargaining (GRI 407). Consultation is open until 9 March 2026.
## Jurisdictional developments
<a class="section__global-number" href="#paragraph-11" id="paragraph-11">11</a>The following paragraphs provide a summary of updates from other jurisdictions in relation to sustainability-related reporting since the last update paper published for the December 2025 TAC meeting.
### Canada
<a class="section__global-number" href="#paragraph-12" id="paragraph-12">12</a>The Canadian Sustainability Standards Board (CSSB) has published a new three-year strategic plan. It notes three priorities: supporting the implementation of the Canadian Sustainability Disclosure Standards (CSDS), including indigenous people in sustainability standard-setting, and contributing to international standards.
### China
<a class="section__global-number" href="#paragraph-13" id="paragraph-13">13</a>Various departments of the Chinese government have jointly issued a Climate Standard which is intended to produce functionally equivalent results to IFRS S2. This follows the issuance of a Basic Standard in November 2024.
### European Union
<a class="section__global-number" href="#paragraph-14" id="paragraph-14">14</a>The European Ombudsman's inquiry into the process surrounding the European Commission's Omnibus proposals found that it had “a number of procedural shortcomings", which together amount to “maladministration”. The Commission had defined the Omnibus as 'urgent' and therefore diverged from its Better Regulations rules, but the Ombudsman found that this decision was not sufficiently justified. The Ombudsman has suggested to the Commission that its stakeholder consultation rules for urgent proposals are clarified, and that it ensures evidence to support its proposals are published in good time to enable public debate.
<a class="section__global-number" href="#paragraph-15" id="paragraph-15">15</a>In early December, the European Financial Reporting Advisory Group (EFRAG) submitted its technical advice on the simplifications to the European Sustainability Reporting Standards (ESRS), following approval by its Sustainability Reporting Board (SRB) to approve the revised standards in late November. It also published a Basis for Conclusions, a cost-benefit analysis, and a log of amendments. The European Commission is expected to adopt the simplified standards via a delegated act by mid-2026.
<a class="section__global-number" href="#paragraph-16" id="paragraph-16">16</a>Further, the Council of the European Union and the European Parliament have reached a provisional agreement on simplifying the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). For CSRD, this would see a raise in threshold to companies over 1000 employees and €450m net turnover, and a pause on obligations for companies that began reporting in 2024 until 2027. The agreement on CSDDD would raise the threshold to companies with over 5000 employees and €1.5bn net turnover. The EU-wide harmonised liability regime has been removed, as has the obligation to adopt a transition plan for climate change mitigation.
<a class="section__global-number" href="#paragraph-17" id="paragraph-17">17</a>EFRAG has launched an ESRS Knowledge Hub to provide online support to companies navigating the Standards.
<a class="section__global-number" href="#paragraph-18" id="paragraph-18">18</a>A group of civil society organisations have filed a formal complaint with the EU Parliamentary Advisory Committee on the Conduct of Members against the lead Omnibus rapporteur, MEP Jörgen Warborn, due to his role as president of the lobbying group SME Europe. They suggest this is a conflict of interest, which Warborn has denied.
### Qatar
<a class="section__global-number" href="#paragraph-19" id="paragraph-19">19</a>The Qatar Central Bank (QBC) has adopted regulation aligned with IFRS S1 and IFRS S2 for any financial institutions it regulates. Reporting will begin from 1 January 2026.
## Appendix 1 – Jurisdictional developments {: #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 5 January 2026.
<div class="table-container" markdown="1">
| Jurisdiction | Current status | Both IFRS S1 & IFRS S2? | Reporting commencing from | Companies in scope |
|:------------------------|:---------------------------|:------------------------|:--------------------------|:---------------------------------------|
| African Union: Ghana | Endorsed | Both | 2027-2028 | Significant Public Interest Entities (Listed & unlisted) |
| African Union: Kenya | Endorsed and published roadmap | Both | 2025-2027 | Public Interest Entities; Non-Public Interest Entities (large entities); Small- to Medium-Sized Entities |
| African Union: Morocco | Publicly committed | - | - | - |
| African Union: Nigeria | Endorsed and published roadmap | Both | 2028-2030 | Public Interest Entities; Small- to Medium-Sized Entities |
| African Union: Rwanda | Endorsed and published roadmap | 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 IFRS S2 - mandatory | 2025 | Listed & unlisted |
| Brazil | Endorsed | Both | 2026 | Listed |
| Canada | Endorsed | Both | 2025 | Currently voluntary |
| China | Endorsed | Both | 2026-2027 | Listed & unlisted |
| India | Consultation closed | IFRS S2 only | 2025-2029 | Banking & finance |
| Indonesia | Endorsed | Both | 2027 | To be confirmed |
| Japan | Endorsed | Both | - | Listed |
| Mexico | Endorsed | Both | 2026 | Listed & unlisted |
| South Korea | Consultation closed | Both | 2026-2030 | Listed |
| Turkey | Endorsed | Both | 2024 | Regulated financial institutions & large companies |
</div>
### 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 (countries and regional bodies) summary as at 5 January 2026.
<div class="table-container" markdown="1">
| 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 | 2026 | Listed |
| Qatar | Endorsed | Both | 2026 | Financial institutions regulated by the Qatar Central Bank |
| 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 |
</div>
### 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 Standards as at 5 January 2026.
<div class="table-container" markdown="1">
| 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 |
</div>
* Although ESRS 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. Note that this is subject to change as EFRAG finalises amendments to its standards arising from the simplification project.
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