The Government has recently published several new pieces of work, including the Land Use Framework and a consultation on raising integrity in voluntary carbon and nature markets. At the same time they say they’re “looking to shape the international standard‑setting processes that influence how corporates and investors use credits and make credible claims.”

They go on to say: “Work is ongoing to improve corporate sustainability reporting through the application of the International Sustainability Standards Board (ISSB) standards, climate and nature transition plans, and supporting UK uptake of the Taskforce for Nature-related Financial Disclosures (TNFD). Taken together, this work will strengthen confidence in these markets and support responsible participation, aligned with international best practice.”

This is designed to provide long term certainty for the sustainable finance industry which helps “to drive innovation and raise integrity in markets through new products and services that enhance transparency, mitigate risks and reduce friction.”

In the summary of responses to the above consultation, many respondents “welcomed the proposal to align UK guidance with international frameworks (i.e., interoperability with wider reporting regimes)” like the ISSB, to avoid duplicative reporting.

When we turn our focus to the ISSB standards, we see that they have just launched a call for comments on proposed changes to how industries disclose sustainability risk. Proposed changes for meat include dismantling the existing dual focus on environmental and social supply chain impacts. It implies companies will have to justify how or whether they’re investing in sustainable alternative products (e.g. plant-based or cultured meat); and it foreshadows investor concerns over future regulatory shocks that could materialise like bans on certain agricultural practices or carbon taxes on emissions.

This is currently coming over the horizon and may only affect listed companies to begin with. But it’s worth keeping an eye on how radically the ISSB standards do change and whether these are the international standards the UK government decides to align with more widely.