Sustainability reporting
Executive summary
- AAT believes there is a need for a set of internationally recognised sustainability reporting standards to be agreed as soon as is practicable.
- AAT wholeheartedly backs measures to improve reporting on sustainability issues, especially in relation to global consistency, and therefore welcomes IFRS involvement in such issues. However, AAT is concerned that no timescales for action are set out in the consultation document and recognises that some countries, notably the UK, cannot wait for internationally agreed standards to be agreed and are therefore proceeding at pace.
- AAT supports the establishment of a new Sustainability Standards Board (SSB) under the governance structure of the IFRS providing this is done quickly.
- AAT believes climate related information should be the initial focus of the SSB. However, whilst the SSB should prioritise climate-related risk it could simultaneously consult on other environmental priorities.
- With regard to materiality, AAT suggests that the SSB focus on the needs of investors and other market participants first whilst eventually adopting an approach that deals with materiality for multiple stakeholders. To provide reassurance to such stakeholders, and certainty for all, it would be particularly helpful if a timescale for achieving this were to be set out by the SSB.
- AAT believes that any attempts to achieve globally consistent sustainability reporting practices must be subject to external assurance.
Related consultation responses
Enhancing climate-related disclosures by asset managers, life insurers and pension providers
We support efforts to increase the visibility of climate related risks in financial markets, and the use of TCFD recommendations as a basis of reporting.
Plastic waste
AAT strongly supports efforts to reduce single use by encouraging alternatives, penalising through taxation, charges or both and incentivising behaviour change.
Aviation tax reform
We don't agree with proposals to reduce Air Passenger Duty on UK domestic flights because it contradicts and weakens policy on reaching net zero by 2050.
