FCA asks what comes after TCFD for UK sustainability reporting
What should sustainability reporting look like in a post-TCFD world? And how can UK markets stay aligned as global standards rapidly converge? Recently, the Financial Conduct Authority (FCA) opened a consultation that begins to answer both questions, setting out proposals to update sustainability disclosure requirements for UK listed companies.
The FCA is consulting on replacing its existing TCFD-aligned rules with reporting based on UK Sustainability Reporting Standards, which in practical terms are nearly identical to the ISSB standards issued by the IFRS Foundation. Climate disclosures under UK SRS S2 would become mandatory for in-scope companies, while broader sustainability reporting under UK SRS S1 would initially follow a comply or explain approach. The proposals reflect the growing international shift towards ISSB standards, now planned for adoption across around 40 jurisdictions.
What makes this consultation notable is the signal it sends to markets. By anchoring future UK requirements to ISSB-based standards, the FCA is pointing towards a more stable and internationally aligned sustainability reporting landscape.
The FCA is seeking feedback — including on digital mandates — until March, with final rules expected later this year.
You can read the full paper here.
