Sustainability reporting: from narrative to numbers

The publication the UK’s first Sustainability Reporting Standards (SRS) marked a significant moment – and contrasts with global uncertainty around corporate sustainability. Paul Turner, vice-president, UK and Ireland at the Chartered Institute of Management Accountants (CIMA), writes

As the US announced – once again – that it will be withdrawing from the Paris Agreement, and the EU scaled back elements of its sustainability reporting directives, the UK has taken a clear step forward by providing a clear and practical framework for reporting material information about sustainability-related risks and opportunities.

These standards raise the bar on transparency and data quality in the UK. For investors, they offer more consistent and reliable information. For businesses, they support clearer planning, more disciplined target setting, and better alignment with long-term value creation, ultimately accelerating progress toward the UK’s net zero ambition.

For businesses and investors, predictability and stability matter – they create the confidence needed to invest, plan long term and, importantly, provide a reason to be optimistic about the future. At a time when the global sustainability landscape can feel fragmented, the UK is sending a clear signal: credible, high-quality sustainability reporting is here to stay.

Corporate sustainability is not going away – despite the noise

Amid these policy reversals, political shifts and regulatory revisions, you could be tempted to think that corporate sustainability is losing ground. But that simply is not the case.

Across the world, the trajectory towards low- or no-carbon business models continues. The underlying drivers behind corporate sustainability remain unchanged: climate volatility is increasing, supply chains are more complex and stakeholders – from investors to customers to regulators – expect transparency on how companies manage these risks.

You may see some organisations adjust their narratives to avoid public, legal and political backlash, a phenomenon often referred to as ‘greenhushing’, but the work continues behind the scenes.

Many countries are leading with a ‘climate first’ approach as they adopt the International Sustainability Standards Board’s (ISSB) sustainability disclosure standards – IFRS S1 and IFRS S2. Most are allowing a grace period during the initial application of IFRS S2 before IFRS S1 is required for reporting on all other sustainability related risks and opportunities that may affect an organisation’s performance and prospects.

This is part of a wider global shift: momentum is strengthening internationally, with nearly forty countries publicly endorsing or committing to the ISSB’s IFRS S1 and S2 standards as of January 2026, representing nearly 60% of global GDP.

As this phased adoption continues, it is expected to extend into nature and human capital-related reporting, with the ISSB set to issue an exposure draft on its nature-related standard setting activities ahead of October’s COP17 on biodiversity in Armenia.

What this means for finance and accounting professionals

For finance and accounting professionals, this evolving landscape is bringing new responsibilities, but also new influence.

Finance will be at the heart of sustainability

As sustainability reporting becomes more integrated with financial reporting, finance teams will lead the work of verifying data, building internal controls and ensuring that sustainability‑related risks and opportunities are captured accurately. This is a significant expansion of scope – and a natural extension of the profession’s strengths in rigour, materiality and assurance.

Assurance will rapidly expand and diversify

Demand for credible sustainability information is pushing assurance to the forefront. In the UK, a voluntary registration regime may become mandatory over time, raising expectations for the competence and quality of service providers. In the EU, limited assurance will be required by mid-2027. This creates an opportunity for audit firms and independent assurance providers alike to develop new services and deepen client relationships.

Connecting sustainability to financial performance becomes essential

Boards and investors increasingly want to understand how sustainability issues – climate exposure, labour practices, biodiversity risks – translate into cash flow, asset valuation, capital allocation and long‑term resilience. Finance professionals will be expected not just to report data but to interpret it. Those who can connect the dots between sustainability performance and financial implications will be central to strategic planning and value creation.

The UK’s adoption of SRS is more than a reporting development; it is a signal that sustainability has moved from the margins into the mainstream of business and financial decision‑making. Amid global uncertainty, this shift presents an enormous opportunity for the finance and accounting profession.

As sustainability information becomes more consistent, comparable, and investor‑relevant, the profession stands at the centre of translating that information into insight and action. This is a moment for finance professionals to lead – not only in technical reporting and assurance, but in shaping resilient, long‑term business strategies that deliver value for organisations, economies and society.