13 Items for Noting

16 July 2026 Agenda Paper 13: Appendix A OFFICIAL - PUBLIC

Executive Summary

Project Type Monitoring

Project Scope Limited

Purpose of the paper This paper provides a summary of the agenda and outcomes from the 16 June 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 16 June 2026 meeting, the TAC considered its draft response to the International Sustainability Standards Board’s (ISSB's) March 2026 Exposure Draft on enhancements to three Sustainability Accounting Standards Board (SASB) Standards.

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 16 June 2026

A1 The Committee:

1. Received a general sustainability reporting update² that covered recent International Sustainability Standards Board (ISSB) meetings, other international body developments, and developments in selected jurisdictions.
2. Discussed the ISSB’s project to enhance the Sustainability Accounting Standards Board (SASB) Standards, focusing on the TAC’s draft response to the ISSB's March 2026 Exposure Draft: Proposed amendments to the SASB Standards and IFRS S2 Industry-based Guidance.

Proposed amendments to SASB Standards: Electric Utilities & Power Generators SASB Standard 3

A2 The Committee discussed the key points to be included in the TAC’s response to the ISSB’s March 2026 Exposure Draft: Proposed Amendments to the SASB Standards and IFRS S2 Industry-based Guidance.

A3 The draft response includes points related to connectivity regarding the proposed ‘Amount and percentage of assets vulnerable to climate-related physical risks, disaggregated by industry asset type and climate-related physical risk’ metric in the Electric Utilities & Power Generators SASB Standard⁴. The draft response:

1. notes the absence of valuation methodology and multi-hazard counting guidance; and
2. suggests that the ISSB consider specifying that the ‘amount’, in the technical protocol, should be based on the carrying amount recognised in the financial statements.

A4 The Committee disagreed that the comment letter should recommend that where assets are fully depreciated, but remain operationally significant, entities should be required to disclose this fact. The Committee noted that such a disclosure requirement would go beyond the requirements of IFRS Accounting Standards.

Proposed amendments to SASB Standards: Agricultural Products SASB Standard

A5 The Committee discussed the relationship between impact materiality and financial materiality, noting that the IFRS Foundation’s literature refers only to “materiality”.

Annex One: UK Sustainability Disclosure TAC background

1 The TAC was initially tasked by the Department for Business and Trade (DBT)⁵ to assess the IFRS Sustainability Disclosure Standards, from a technical perspective, and provide advice⁶ 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 concluded⁷ 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 DBT⁸ to understand the ISSB’s enhancements to the SASB Standards and their implications for UK Sustainability Reporting Standards (UK SRS). On 16 March 2026, DBT⁹ 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 Committee¹⁰ (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 website¹¹.

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: meeting summary
7. Tuesday, 14 July
8. Tuesday, 15 September
9. Tuesday, 13 October
10. Tuesday, 17 November
11. Tuesday, 15 December

16 July 2026
Agenda Paper 13: Appendix B
OFFICIAL - PUBLIC

Appendix B: Sustainability Update

IFRS Foundation updates

International Sustainability Standards Board (ISSB)

B1 On 24 June 2026, the ISSB met to discuss nature-related disclosures in relation to:

1. terms and concepts to be used in the proposed IFRS Practice Statement Nature-related Disclosures (PS)¹²;
2. sources of guidance for metrics; and
3. first application of the PS and statement of compliance.

B2 To clarify the scope of the PS the ISSB tentatively decided that the term ‘environmental resources’ would be used in place of ‘environmental assets’ and that the PS would define both nature-related transition risks and nature-related physical risks.

B3 The ISSB also tentatively decided that the PS would permit an entity to refer and consider the applicability of the Taskforce on Nature-related Financial Disclosures (TNFD) metrics where they assisted with meeting the objective of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and did not conflict with IFRS Sustainability Disclosure Standards.

B4 In relation to the initial application, the ISSB tentatively decided that the PS would be available for application from the date of its issuance for entities applying IFRS S1 and IFRS S2 Climate-related Disclosures. The ISSB also tentatively decided that entities which had complied with all the requirements in IFRS Sustainability Disclosure Standards and all the requirements in the PS would be required to make an explicit statement of compliance.

B5 The ISSB will now consider whether to start the balloting process for an Exposure Draft of the PS.

UK update

B6 The Institute of Chartered Accountants in England and Wales (ICAEW) announced¹³ a strategic partnership with the UN Sustainable Stock Exchange (UN SSE) to support the implementation of sustainability disclosure standards.

Rest of world update

B7 The European Commission adopted simplified versions of the European Sustainability Reporting Standards (ESRS), with the revised standards set to take effect from next year¹⁴. The ESRS will be submitted to the European Parliament and the Council of the EU for a two-month scrutiny period. Once adopted, companies subject to the Corporate Sustainability Reporting Directive (CSRD) will be obliged to apply the updated reporting standards from financial years beginning 1 January 2027.

B8 EIOPA, the European Insurance and Occupational Pensions Authority is consulting on proposed changes¹⁵ to the sustainability disclosure requirements in place for insurers under the EU Taxonomy framework. The consultation seeks stakeholder feedback on simplifying reporting to better align with other sustainable finance frameworks.

B9 The Accounting Standards Committee of Germany (DRSC) published¹⁶ a report on anticipated financial effects requirements of some of the largest listed entities in Europe. The report indicates that sustainability disclosure standards are not yet clear enough regarding what entities are expected to disclose and encourages standard setters to engage further with stakeholders to resolve.

B10 The New Zealand External Reporting Board (XRB) published a draft roadmap¹⁷ indicating ISSB-aligned standards would replace TCFD-aligned requirements from 2033, with early adoption permitted.