10 Items for Noting

26 March 2026 Agenda Paper 10: Appendix A

Appendix A: Sustainability Update

IFRS Foundation updates

International Sustainability Standards Board (ISSB)

A1On 25-26 February 2026,¹ the ISSB met to discuss: terms and concepts for standard-setting on nature-related disclosure requirements; the project's title; and connections between climate and nature-related disclosure requirements. The ISSB tentatively agreed these areas and to provide additional guidance on nature-related disclosures.

A2At the same meeting, the ISSB discussed ratifying a prospective Exposure Draft (ED) which will set out proposed amendments to the remaining three of the 12 SASB Standards prioritised for enhancement and the consequential amendments to the industry-based guidance on Implementing IFRS S2 Climate-related Disclosures. The ISSB tentatively decided to ratify the ED, set a 120-day consultation period, and confirmed it was satisfied that the IFRS due process requirements had been met. The ISSB expects to publish the ED in March 2026.

UK update

A3The Department for Business and Trade (DBT) published the Sustainability Reporting Standards General Requirements for Disclosure of Sustainability-related Financial Information² (UK SRS1) and Climate-related Disclosures³ (UK SRS2). The standards are based on IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures and are available for voluntary use.

A4While UK SRS are based on the ISSB's Disclosure Standards, they have limited amendments. These include the removal of the 'effective date' and that UK entities will not be required to 'refer to and consider' the applicability of the SASB materials.

A5HM Revenue and Customs (HMRC) published a consultation on its proposed UK Carbon Border Adjustment Mechanism (UK CBAM)⁴, planned for implementation from 1 January 2027. The consultation is open until 24 March.

26 March 2026 Agenda Paper 10: Appendix A

European update

A6The European Parliament and the European Council have finalised the content proposals of the Omnibus package and published this in the Official Journal⁵. Entities will be in scope of the Corporate Sustainability Reporting Directive (CSRD) if they have a net turnover exceeding EUR 450 million and an average of more than 1,000 employees during the financial year. The same threshold applies to non-EU entities that are listed on an EU-regulated market.