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The Financial Conduct Authority (FCA) must ensure British companies are prepared for increasing sustainability reporting challenges, according to the Association of Chartered Certified Accountants (ACCA).
Responding to a consultation on aligning disclosures with international standards, the body said the regulator should balance investor needs with current market maturity.
The proposal to align requirements with the new UK Sustainability Reporting Standard 1 and 2 is considered a sensible step by the association.
These standards represent a significant expansion in scope compared to the previous requirements of the Task Force on Climate-related Financial Disclosures.
The ACCA is calling for a proportionate approach to ensure successful implementation, noting that the ultimate goal remains the mandatory adoption of disclosure requirements.
Technical and strategic engagement head Glenn Collin said: “It is therefore important that the FCA continues to consider market readiness, both in terms of capabilities and data availability, particularly for smaller or less mature preparers within the in-scope population.”
Regional lead policy and insights Joe Fitzsimons added: “Regular assessments support in scope listed companies with operational planning, system readiness and capacity building while also giving investors greater certainty about when they can expect comprehensive disclosures to become available.”
