FRC publishes final report on sustainability assurance market - DT Economics on the steering group

The Financial Reporting Council has published the final report from its market study into the assurance of sustainability reporting, following a study launched in March 2024. DT Economics Managing Partner David Thomas served on the FRC's steering group for the study.

The study found that while the UK's market for sustainability assurance is functioning well, there are concerns over quality consistency amid growing demand. The FRC identified three recommended actions to support the market's development: establishing a clear UK policy framework for sustainability assurance that provides medium-term certainty for providers and reporters; creating a unified regulatory regime that consolidates standard-setting, oversight, enforcement and market monitoring; and improving the calibre of available information on assurance quality to support how the market functions.

The final report draws on evidence gathered from FTSE 350 companies, private companies, and audit and non-audit firm providers of sustainability assurance. The FRC has said it will continue to provide technical expertise to the government as it considers the UK's policy position and any appropriate regulatory framework for the sector.

The full report is available on the FRC's website. FRC's consultation page..