The Association of Chartered Certified Accountants (ACCA) has urged the Financial Conduct Authority (FCA) to ensure British businesses are properly equipped to navigate increasingly complex sustainability reporting requirements. In its response to the city watchdog’s consultation on aligning disclosures with international standards, the professional body emphasised the need for a “pragmatic and proportionate” transition.
The ACCA suggested that while aligning FCA requirements with the newly introduced UK Sustainability Reporting Standards (SRS) 1 and 2 is a logical progression, the shift represents a significant jump in detail compared to previous climate-related disclosures. Experts have warned that the increased scope and specificity could prove particularly challenging for smaller firms or those with less mature data-gathering capabilities.
Glenn Collins, Head of Technical and Strategic Engagement at ACCA UK, highlighted the importance of gauging market readiness. He noted that the FCA must consider whether firms actually have the internal skills and data availability to meet these heightened expectations, particularly when dealing with the broader population of in-scope companies.
While the ACCA remains a firm supporter of the move towards full and mandatory sustainability disclosures, it is calling for the use of transitional arrangements to protect the quality of reporting. The group believes that regular assessments of operational planning and system readiness will provide investors with greater certainty regarding when comprehensive data will realistically be available.
Joe Fitzsimons, Regional Lead for Policy and Insights at ACCA, stated that such assessments support listed companies with capacity building while ensuring the market moves toward high-quality, decision-useful information at a manageable pace.
