ACCA worried about FRC move on sustainability

ACCA has warned the Financial Reporting Council (FRC) now is not the time to “row back on UK investor governance commitments on sustainability”.

It appears worried that the FRC’s proposed revised definition of ‘stewardship’ could be interpreted as a scaling back of intent on sustainability.

FRC wants to remove ‘environment’ from the proposed definition, and ACCA’s Mike Suffield (pictured), said: “Climate-related disclosures continue to mature globally, shifting from tick-box statements to demonstrable action. This is reflected in recent regulatory developments, such as the International Sustainability Standards Board (ISSB) IFRS S1 and S2.

“In the light of these trends, we are concerned about the message that this proposed change would send to the market.”

Despite this criticism, ACCA stressed it was supportive of the overall proposed updating of the Stewardship Code, and supports FRC’s efforts to bring about a more streamlined approach to reporting.