{"id":5977,"date":"2024-09-26T08:55:41","date_gmt":"2024-09-26T08:55:41","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=5977"},"modified":"2024-10-03T13:12:56","modified_gmt":"2024-10-03T13:12:56","slug":"ifrs-s1-and-s2-and-the-future-of-esg-reporting-standards","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/ifrs-s1-and-s2-and-the-future-of-esg-reporting-standards\/","title":{"rendered":"IFRS S1 and S2 and the future of ESG reporting standards"},"content":{"rendered":"<p><span data-contrast=\"auto\">Sustainability has become a core part of how businesses are expected to operate, whether we like it or not.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><!--more--><\/p>\n<p><span data-contrast=\"auto\">You might think that all the talk about environmental, social, and governance (ESG) issues is only relevant to big corporations or public companies, but that\u2019s not quite the case anymore.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Even though adopting International Financial Reporting Standards (IFRS) might be optional for smaller businesses right now, the new IFRS S1 and IFRS S2 standards are worth understanding, as they could shape the future of sustainability for businesses of all sizes.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">What are IFRS S1 and S2?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In June 2023, the International Sustainability Standards Board (ISSB) launched two new sustainability reporting standards:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">IFRS S1 \u2013 General Requirements for Disclosure of Sustainability-related Financial Information<\/span><\/b><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">IFRS S2 \u2013 Climate-related Disclosures<\/span><\/b><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">These standards are currently under review here in the UK, and the Government is planning to endorse them by March 2025.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The idea is to create a common language around sustainability reporting, helping businesses communicate clearly and consistently about how they\u2019re managing risks and opportunities related to ESG.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">And, once the Government gives the green light, these standards are going to be part of a broader Sustainability Disclosure Reporting framework.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">They will play a big role in how UK-listed companies report sustainability-related information to investors.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">What\u2019s happening next?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Once endorsed in March 2025, the Financial Conduct Authority (FCA) is expected to roll out these requirements for public companies, and there\u2019s a consultation process to see if private companies, including SMEs, should also follow these rules.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The Government will also be looking at the cost of these reporting requirements for smaller businesses, but they\u2019ll be weighing that against the benefits for investors and the wider economy.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">There\u2019s even talk of introducing a green taxonomy \u2013 which basically helps define what counts as environmentally sustainable.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">If you are curious about how IFRS standards could apply to your business or want to improve your ESG reporting, get in touch with us today.<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sustainability has become a core part of how businesses are expected to operate, whether we like it or not.\u00a0\u00a0<\/p>\n","protected":false},"author":2,"featured_media":5980,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,125],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5977"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=5977"}],"version-history":[{"count":2,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5977\/revisions"}],"predecessor-version":[{"id":5991,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5977\/revisions\/5991"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/5980"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=5977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=5977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=5977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}