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TAC Public Meeting September 2026 Paper 2: September General Reporting Update
AGENDA PAPER 2
Executive summary
| Date | 15 September 2026 |
|---|---|
| Paper reference | TAC-Update-Sept-2026 |
| Project | Monitoring |
| Topic | September 2026 General Reporting Update |
Objective of the paper
This paper provides key updates since the update paper published for the July 2026 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 7 September 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) to discuss in a public meeting. This paper 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
3On 7 September 2026, the UK Government launched a consultation on modernising the corporate reporting framework to support economic growth and international competitiveness. The proposals seek to simplify company classifications, thresholds and exemptions, refocus strategic reporting on financially material information for investors and creditors and streamline financial, sustainability, governance and remuneration disclosures. The consultation also considers greater use of digital reporting and enhanced transparency over assurance of strategic-report information. The consultation closes on 30 November 2026.
4The UK Government introduced the Immigration and Asylum Bill, proposing significant reforms to the Modern Slavery Act 2015. The Bill would require in-scope companies to report on modern slavery risks, due diligence, staff training and the effectiveness of their actions. It would also extend reporting to certain public authorities, establish a six-month publication deadline and introduce financial penalties of up to the greater of £1 million or 1% of annual turnover for non-compliance. The Bill remains subject to parliamentary approval.
5On 16 July 2026, HM Treasury published its Sustainability Reporting Guidance for 2026-27, setting minimum disclosure requirements for central government annual reports and accounts. The guidance covers greenhouse gas emissions, carbon offsets, waste, finite resource consumption, TCFD-aligned disclosures and the UN Sustainable Development Goals. It applies to government departments and larger executive agencies and public bodies.
6On 28 July 2026, Deloitte UK reported that 69% of FTSE 100 companies restated sustainability-related metrics in 2025, up from 46% in 2024. Restatements also became more extensive, with 51 companies making adjustments to multiple metrics, compared with 17 in the previous year. Around two-thirds related to greenhouse gas emissions. However, error-driven adjustments fell by 23%, suggesting that companies were increasingly refining methodologies, organisational boundaries and data quality rather than correcting mistakes, particularly in relation to Scope 3 emissions.
7The FRC has published guidance to help companies apply materiality when preparing annual reports, including frequently asked questions and an illustrative six-step process. It encourages companies to treat annual reports as communication tools rather than compliance checklists, exercise judgement and focus on information that supports investor decision-making.
International Sustainability Standards Board & other international body developments
8In July 2026, the International Sustainability Standards Board (ISSB) approved the development of an exposure draft on nature-related disclosures, confirming that due process requirements had been met and setting a 120-day consultation period. Publication is planned for October 2026. Separately, the ISSB agreed to develop proposed amendments to all six SASB Standards in the Technology and Communications sector as Phase 2 of its SASB enhancement project.
9On 23 July 2026, the Transition Implementation Group on IFRS S1 and IFRS S2 discussed how companies should identify climate-related targets under IFRS S2. It concluded that disclosures are not limited to greenhouse gas emissions targets, formally labelled ‘targets’, or commitments approved by a particular governing body. Companies should apply judgement to identify relevant targets, including those required by law and disclose material information that helps investors understand their climate strategy, performance and prospects.
10The IFRS Foundation Trustees have approved a five-year operating and financing plan for the IASB and ISSB and confirmed that Geneva will become the ISSB's official seat from 2027, complementing its existing international presence. The Trustees have also proposed constitutional amendments allowing both boards normally to comprise between 8 and 12 members. Although each board is expected to have 10 members from 2028, their precise sizes could subsequently vary according to their respective priorities and workloads. The consultation closes on 16 November 2026.
Jurisdictional developments
Australia
11On 23 August 2026, Australia's Treasury launched a consultation on measures to reduce the cost and complexity of mandatory AASB S2 climate reporting. Options include retaining limited assurance indefinitely, delaying reasonable assurance until 2035 or applying it only to sufficiently mature data. The consultation also considers clearer proportionality guidance and measures to reduce burdensome supply-chain data requests. The consultation closes on 2 October 2026.
European Union
12On 1 July 2026, EFRAG published its 2026 State of Play Report, based on 905 assured FY2025 sustainability statements prepared under the ESRS. Of the companies reviewed, 99% identified Climate Change and Own Workforce as significant topics, while 95% identified Business Conduct as significant. 82% had updated their double materiality assessments, and 67% used a combination of top-down and bottom-up assessment methods. The proportion disclosing a climate transition plan increased from 55% in FY2024 to 69% in FY2025, while the average statement length fell from 115 to 95 pages.
13On 23 July 2026, EFRAG published exposure drafts of the European Sustainability Reporting Standards for Third-Country Groups (ESRS-40a) and launched a 100-day consultation, closing on 31 October 2026. The standards will apply from financial years beginning on or after 1 January 2028 to certain non-EU groups with significant EU operations, with first reports published in 2029. The draft standards focus on companies' impacts on people and the environment, rather than financial risks and opportunities and propose global or mixed reporting approaches. However, the European Commission is considering legal and practical uncertainties concerning EU-generated turnover, group-level reporting, differing financial year-ends and assurance requirements. EFRAG expects to submit its final technical advice to the Commission in January 2027.
Japan
14On 15 July 2026, Japan enacted amendments to the Financial Instruments and Exchange Act establishing mandatory sustainability disclosure and third-party assurance for specified companies listed on the Tokyo Stock Exchange Prime Market. In-scope companies will be required, on a phased basis from financial years ending March 2027, to report in accordance with the Sustainability Standards Board of Japan (SSBJ) standards, which incorporate IFRS S1 and IFRS S2 and are designed to deliver functionally aligned outcomes. The legislation also establishes a registration and regulatory framework for sustainability assurance providers.
Philippines
15On 14 July 2026, the Securities and Exchange Commission of the Philippines (SEC) adopted IFRS S1 and IFRS S2, following their endorsement by the Philippine Sustainability Reporting Committee. Incorporated through SEC Memorandum Circular No. 22, the standards update the national financial reporting framework and support more consistent and comparable sustainability-related financial disclosures.
Singapore
16On 27 July 2026, Singapore's Accounting and Corporate Regulatory Authority and Singapore Exchange launched a consultation on draft sustainability disclosure standards aligned with IFRS S1 and IFRS S2. Mandatory climate reporting under SFRS S2 (aligned to IFRS 2) will be phased in for listed and large private companies, while SFRS S1 (aligned to IFRS S1) will remain voluntary. The proposals require sustainability and financial disclosures to be published concurrently. Scope 3 GHG emissions reporting will remain voluntary for companies outside the Straits Times Index, with external assurance introduced progressively from FY2029.
South Korea
17On 8 July 2026, South Korea's Financial Services Commission confirmed a phased introduction of mandatory sustainability reporting based on ISSB standards, with the largest listed (Korea Composite Stock Price Index-listed) companies required to report from 2028 and the regime subsequently expanding to a wider group of companies. The roadmap includes transitional relief measures and delays mandatory Scope 3 GHG emissions reporting by three years, reflecting concerns over data availability and reporting readiness across supply chains.
United States of America
18On 27 July 2026, the California Air Resources Board (CARB) opened a 15-day consultation, which closed on 11 August 2026, on limited amendments to the first-year regulations implementing SB 253. The proposed amendments include changes reflecting the first-year reporting timetable, under which companies' first Scope 1 and 2 GHG emissions disclosures are due by 10 November 2026 rather than 10 August 2026. Separately, CARB is developing regulations for 2027 onwards, including proposals to phase in Scope 3 reporting by initially requiring five of the 15 GHG emissions categories and to introduce limited assurance over Scope 1 and 2 GHG emissions disclosures.
19On 24 August 2026, a group of US state attorneys general wrote to the Big Four accounting firms and the Securities and Exchange Commission, questioning whether the firms' support for TCFD, ISSB standards and net-zero initiatives is compatible with their professional duties. The letter alleges that the firms' commitments to these initiatives may compromise auditor independence, materiality, neutrality and objectivity, while creating conflicts because the firms benefit financially from sustainability assurance and advisory services. It requests extensive information on their climate-related policies, methodologies, safeguards, client disclosures and revenues. These are allegations made by the signatories, not established findings.
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 7 September 2026.
| Jurisdiction | Current status | Both IFRS S1 & IFRS S2? | Reporting commencing from | Companies in scope |
|---|---|---|---|---|
| African Union: Ethiopia | Consultation on roadmap closed | Both | 2026-2029 | Listed & unlisted |
| African Union: Ghana | Endorsed | Both | 2027-2028 | Significant Public Interest Entities (Listed & specified 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 | Consultation closed | Both | 2026-2027 | Listed & unlisted |
| Australia | Endorsed | Both: AASB S1-voluntary AASB S2 - mandatory | 2025 | Listed & unlisted meeting statutory thresholds |
| Brazil | Endorsed | Both | 2026 | Listed - voluntary, but any reporting must fully apply CBPS (ISSB) |
| Canada | Endorsed | Both | 2025 | Currently voluntary |
| China | Endorsed | Both | 2026-2027 | Listed & unlisted |
| India | Consultation closed | IFRS S2 only | 2025-2029 | Banking & finance |
| Indonesia | Consultation closed | Both | 2027-2029 | Listed & unlisted |
| Japan | Endorsed | Both | - | Listed |
| Mexico | Endorsed | Both | 2026 | Listed & unlisted |
| South Korea | Endorsed | Both | 2028-2029 | KOSPI-listed groups, phased by consolidated asset size |
| Türkiye | 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 (countries and regional bodies) summary as at 7 September 2026.
| 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 IFRS 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 | Endorsed | Both | 2026 | Listed |
| Qatar | Endorsed | Both | 2026 | Financial institutions regulated by the Qatar Central Bank |
| Singapore | Consultation open | Both: SFRS S1 (voluntary) SFRS S2 (mandatory) | 2025-2027 | Listed |
| Sri Lanka | Endorsed | Both | 2025 | To be confirmed |
| Switzerland1 | Consultation open | Both (but also requires impact materiality to be addressed) | 2026 | Listed & unlisted |
| Taiwan | Endorsed | Both | 2026-2028 | Listed |
| Thailand | Endorsed | Both | 2026-2030 | Listed |
| New Zealand | Consultation on roadmap open | IFRS S2 only | 2027 (voluntary); 2033 (mandatory) | Listed & unlisted |
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 7 September 2026.
| Jurisdiction | Current status |----------|----------|-----------|-----------|-------------------------------------------------------------------------| | Argentina | Unconfirmed | - | - | - | | European Union (EU)2 | Revised European Sustainability Reporting Standards (ESRS) and a voluntary standard for smaller companies adopted on 3 July 2026; both delegated acts remain subject to EU scrutiny and entry into force | 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 | | Colorado3 | Colorado Corporate Climate Accountability Act (House Bill 25-1119) - bill | - | Not applicable - the bill did not pass | Not applicable - the proposed regime did not take effect |
Footnotes
-
The draft corporate sustainability law currently under consultation in Switzerland specifies that large companies will have to report under ESRS or an equivalent standard. It does not specify what standards will be considered equivalent. The ISSB considers Switzerland as a jurisdiction in the process of adopting the IFRS Sustainability Disclosure Standards. ↩
-
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. ↩
-
Colorado HB25-1119, Require Disclosures of Climate Emissions, was introduced on 28 January 2025 but postponed indefinitely by the House Energy and Environment Committee on 27 February 2025. Its official status is recorded as 'Lost', and the proposed reporting requirements did not take effect. ↩