FRC launches market study on UK sustainability assurance market

Posted on March 29, 2024 by Editor

The Financial Reporting Council (FRC) has launched a survey of the UK market for sustainability assurance services. This initial study aims to ensure the efficient functioning of the rapidly expanding market and to enhance the quality of assurance provided over companies' sustainability reporting.

Mark Babington, Executive Director of Regulatory Standards at the FRC, emphasised the growing reliance of investors and stakeholders on companies' sustainability reporting and the crucial role of robust assurance mechanisms in upholding transparency and high standards. Babington stressed the importance of ensuring that the sustainability assurance market operates effectively, delivering independent assurance without imposing undue costs and burdens on reporting entities.

The market study will delve into several key areas, including the choice, quality, and competition in the sustainability assurance market, potential impacts from evolving international regulations, and the interplay between sustainability assurance and statutory audit markets.

Given the significant involvement of major audit firms in providing sustainability assurance services alongside statutory audits, the FRC seeks to understand any implications for competition and resilience in the UK's audit market.

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