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Article summary

The Financial Reporting Council (FRC) has published the UK Sustainability Disclosure Technical Advisory Committee (TAC)’s final recommendations to the Secretary of State for Business and Trade, Jonathan Reynolds, endorsing IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and IFRS S2 Climate-related Disclosures (IFRS S2). The TAC’s technical assessment concluded that the endorsement of IFRS S1 and S2 would benefit the long-term public good in the UK. While most requirements were maintained without alteration, the TAC proposed minor amendments to IFRS S1, including extending the 'climate first' reporting relief for up to two years. It also recommended that the UK Sustainability Disclosure Policy and Implementation Committee develop guidance to clarify how entities can align IFRS S1 with existing sustainability-related disclosure requirements under the UK's current legal framework. In addition, it proposed amending IFRS S2's requirement on the use of the Global Industry Classification Standard for disaggregating financed emissions.