11 Items for Noting

25 June 2026 Agenda Paper 11: Appendix A

Executive Summary

Project Type Monitoring

Project Scope Limited

Purpose of the paper This paper provides a summary of the agenda and outcomes from the 19 May 2026 meeting of the UK Sustainability Disclosure Technical Advisory Committee (TAC), as relevant to the UKEB remit¹.

The UKEB is represented on the TAC by a Board Member, who is appointed as a full member to reflect the requirement to maintain connectivity between UK-adopted international accounting standards and UK Sustainability Reporting Standards (UK SRS).

Summary of the Issue At the 19 May 2026 meeting, the TAC considered proposed amendments to two Sustainability Accounting Standards Board (SASB) Standards and considered the extent to which the SASB Standards adequately cover nature-related matters.

Decisions for the Board None

Recommendation N/A – noting only

Appendices Annex One: UK Sustainability Disclosure TAC background Annex Two: UK Sustainability Disclosure TAC meeting schedule

TAC meeting 19 May 2026

A1 The Committee:

1. Received a general sustainability reporting update² that covered recent International Sustainability Standards Board (ISSB) meetings and developments in selected jurisdictions.
2. Discussed a preliminary technical analysis of proposed amendments to two SASB Standards.
3. Considered the nature-related disclosure topics and metrics in the SASB Standards.

SASB Standards enhancement: preliminary analysis [3]

A2 The Committee discussed a preliminary technical analysis of the proposed amendments to the Agricultural Products and Meat, Poultry & Dairy SASB Standards, as published in the ISSB’s Exposure Draft,[⁴] on 26 March 2026.

A3 The Committee remained concerned about inconsistencies between the SASB Standards and the IFRS Sustainability Disclosure Standards, in particular with respect to the concept of materiality. Some Committee members repeated concerns, raised in previous meetings, regarding the appropriateness of enhancing industry-specific guidance before the development of topic-specific guidance.

Nature-related disclosures in the SASB Standards [5]

A4 The Committee considered mapping, undertaken by the Secretariat, of the nature-related disclosure topics and metrics in the SASB Standards across all 77 standards and discussed the extent to which the SASB Standards adequately cover nature-related matters.

A5 The TAC noted that the mapping exercise highlighted a lack of coherence throughout the SASB Standards and suggested ways in which the SASB Standards could be amended to reduce their complexity and inconsistency.

A6 Committee members questioned whether the SASB Standards would lead to the provision of a complete set of nature-related disclosures.

Annex One: UK Sustainability Disclosure TAC background

1 The TAC was initially tasked by the Department for Business and Trade (DBT)⁶ to assess the IFRS Sustainability Disclosure Standards, from a technical perspective, and provide advice⁷ to the Secretary of State on whether their endorsement would be conducive to the long-term public good in the UK.

2 On 18 December 2024, the TAC concluded⁸ that the endorsement of both IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, was likely to be conducive to the long-term public good in the UK.

3 The TAC was also asked by DBT⁹ to understand the ISSB’s enhancements to the SASB Standards and their implications for UK Sustainability Reporting Standards (UK SRS). On 16 March 2026, DBT¹⁰ asked the TAC to prioritise influencing a potential ISSB nature-related Exposure Draft, SASB Standards consultations, and continued engagement with GHG Protocol revisions.

4 In addition to the TAC, there is also a separate Committee, the Policy Implementation Committee¹¹ (PIC), which is responsible for ensuring that any endorsed standards are implemented in a way that aligns with the mandates of UK government departments and regulators.

Annex Two: UK Sustainability Disclosure TAC 2026 meeting schedule

1 The public meeting agenda, technical papers and summary minutes from the TAC meetings can be found on the UK Sustainability Disclosure TAC website¹².

2 TAC meetings, scheduled for 2026, are listed below for information.

1. Monday, 19 January: meeting summary.
2. Tuesday, 17 February: This was a private meeting where the TAC held confidential informational sessions on upcoming workstreams and discussed related administrative matters.
3. Tuesday, 24 March: meeting summary
4. Tuesday, 21 April: meeting summary
5. Tuesday, 19 May: meeting summary
6. Tuesday, 16 June
7. Tuesday, 14 July
8. Tuesday, 15 September
9. Tuesday, 13 October
10. Tuesday, 17 November
11. Tuesday, 15 December

25 June 2026 Agenda Paper 11: Appendix B

Appendix B: Sustainability Update

IFRS Foundation updates

International Sustainability Standards Board (ISSB)

B1 On 13 May 2026, the ISSB met to discuss information about the use of nature-related scenario analysis, the identification of nature-related risks and opportunities, and enhancing the Sustainability Accounting Standards Board (SASB) Standards.¹³

B2 The ISSB discussed plans to develop an IFRS Practice Statement for reporting on nature-related risks and opportunities. The Practice Statement will supplement the requirements in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and IFRS S2 Climate-related Disclosures (IFRS S2). With respect to nature-related scenario analysis, the ISSB tentatively decided:

1. not to provide incremental requirements or guidance on disclosing information about the use of scenario analysis to inform an entity’s identification of nature-related risks;
2. to provide an incremental requirement for an entity to disclose information about whether and how the entity uses scenario analysis to inform its identification of nature-related opportunities;
3. to provide an incremental requirement for an entity to disclose information about whether and how the entity uses scenario analysis to inform its assessment of the nature, likelihood and magnitude of the effects of nature-related risks;
4. to require an entity to use nature-related scenario analysis to provide information about the entity’s resilience to nature-related risks proposing requirements consistent with those in IFRS S2; and
5. to emphasise that the resilience assessment in the context of nature-related changes, developments and uncertainties would be more location and asset specific than the assessment described in IFRS S2.

B3 With relation to the identification of nature-related risks and opportunities, the ISSB tentatively decided to note, in the proposed IFRS Practice Statement, that the Taskforce on Nature-related Financial Disclosures (TNFD) LEAP approach¹⁴ might be relevant in providing nature-related disclosures, in accordance with the objective of IFRS S1.

B4 With respect to enhancing the SASB Standards, the ISSB discussed stakeholder feedback on the Exposure Draft Proposed Amendments to the SASB Standards¹⁵ but was not asked to make any decisions.

UK update

B5 The Financial Conduct Authority (FCA) noted in a press release¹⁶ that investment firms could save around £20m a year under new FCA proposals to simplify climate reporting for investment products. A consultation on the proposals is open until 13 July 2026¹⁷.

Rest of world update

B6 The Securities and Exchange Commission of Brazil (Comissão de Valores Mobiliários)¹⁸ has amended its planned mandatory disclosure of sustainability-related financial information and will instead adopt a ‘comply or explain’ system. Publicly held companies will not be required to disclose financial information, related to sustainability and climate, on or after 1 January 2026.

B7 The US Securities and Exchange Commission (SEC) proposed¹⁹ rescinding the climate-related disclosure rules it adopted in 2024. The rules require public companies to disclose material climate-related risks and their impacts, and for some entities to report material Greenhouse Gas (GHG) emissions.

B8 The Canadian Government²⁰ has pledged $10m over five years to support continued operations of the ISSB in Montréal.

B9 The European Commission published a draft delegated act²¹ that proposes changes to the European Sustainability Reporting Standards (ESRS). The comment period for the draft delegated act ends on 3 June 2026. The adoption of the delegated act is anticipated in the second quarter of 2026. Amended ESRS would apply to all entities subject to sustainability reporting requirements under the Corporate Sustainability Reporting Directive, for financial years beginning on, or after, 1 January 2027.

Footnotes