The UK’s Financial Conduct Authority (FCA) has unveiled a consultation proposing a significant expansion and revision of sustainability reporting requirements for listed companies, centered on new IFRS-aligned standards.

Under the consultation, companies would transition from climate disclosures based on the now-disbanded Task Force on Climate-related Financial Disclosures (TCFD) to reporting aligned with the UK’s forthcoming IFRS-based UK Sustainability Reporting Standards (UK SRS). These standards, derived from the International Sustainability Standards Board (ISSB)’s IFRS S1 and S2 frameworks, aim to provide more consistent and internationally aligned sustainability disclosures.

The proposal would require in-scope companies to make mandatory climate-related disclosures in line with the UK SRS S2 standards beginning in financial years from January 2027. However, recognising implementation challenges, the FCA suggests that more complex elements—such as Scope 3 emissions data and broader sustainability disclosures under UK SRS S1—be introduced on a “comply or explain” basis following transition relief periods.

The consultation also proposes that companies disclose whether they have published a transition plan and, if not, the reasons why; and whether they have obtained third-party sustainability assurance over their disclosures. The FCA’s consultation is open until 20 March 2026, with the regulator targeting a policy statement in autumn 2026 and implementation from January 2027.

These developments reinforce the growing need for a structured, standard-aligned ESG reporting platform and structural processes to manage data and disclosures in a consistent and audit-ready manner.