CIMA welcomes UK sustainability reporting standards

The Chartered Institute of Management Accountants (CIMA) has welcomed the launch of the UK Sustainability Reporting Standards (UK SRS), a move it says will enhance “transparency, accountability and trust” in sustainability-focused financial reporting.

CIMA said the UK SRS offer clear and practical measures to disclose material information about sustainability-related risks and opportunities. It added that the standards are designed to help businesses create long-term value, boost investor confidence and advance the UK’s net-zero goals more rapidly.

The accountancy body added that the new standards will help global businesses standardise their sustainability-related reporting and simplify disclosure across different jurisdictions, as they are based on International Financial Reporting Standards (IFRS) S1 and S2 and subsequently with European Sustainability Reporting Standards (ESRS).

IFRS S1 lays out the overall requirements for sustainability-related financial reporting, allowing companies to present sustainability risks and opportunities to investors in a consistent and comparable way.

IFRS S2 establishes detailed requirements for disclosing climate-related risks and opportunities and is intended to be used in conjunction with IFRS S1. It incorporates all the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD).

CIMA said when combined, these standards provide a clear global standard for sustainability reporting and provide regulators a robust structure they can adjust for jurisdictional needs.

Commenting on the new standards, CIMA Global Head of Sustainability Dr Jeremy Osborn, said: “These standards give business a robust framework to produce meaningful sustainability data that investors can trust. 

“They raise the bar on transparency and data quality, ultimately driving more confident and informed decision-making for investors, whilst creating greater value for business by helping them refine their goals and planning, and ensuring they are well positioned to meet their sustainability targets.”

Andrew Harding, chief executive of management accounting at CIMA, added: “The UK has long led the way in sustainability disclosure, and CIMA has championed this progress for many years through its leadership on integrated reporting and more recently through its active support to the UK Sustainability Disclosure Technical Advisory Committee.

“These standards will go a long way towards building trust in corporate reporting and improving decision-making among business leaders and investors.”