"New standards a game-changer for long-term value creation” says Global Head of Sustainability at The Chartered Institute of Management Accountants

26 June 2025, London – The Chartered Institute of Management Accountants (CIMA) has today welcomed the publication of the exposure drafts of the UK Sustainability Reporting Standards (UK SRS), which set a clear and practical structure for sustainability-related financial reporting.

Together, these standards address the long-standing demand for consistent, comparable, and reliable sustainability disclosures, while supporting business resilience through better management of sustainability-related risks and opportunities, providing investors with material information about the challenges and prospects a business may face in a fast-evolving global economy.

This publication is a timely and significant development – both for the UK and for international efforts to converge sustainability-related disclosures and reporting. Since the launch of the ISSB at COP26 in Glasgow, momentum has grown steadily for global adoption of IFRS S1 and S2, with regulators from more than 30 jurisdictions representing over 60% of global GDP and global carbon emissions, committing to the standards in a clear indication that the push for consistent sustainability disclosure remains strong.

Dr Jeremy Osborn, FCMA, CGMA, FCPA (Aust.), Global Head of Sustainability at The Chartered Institute of Management Accountants, said:

“The differences between UK SRS S1 and UK SRS S2 and IFRS S1 and S2 are explained by the endorsement recommendations made in December 2024 by the UK Sustainability Disclosure Technical Advisory Committee (TAC).”

“The new standards will enable organisations which can demonstrate they are managing their sustainability-related risks and opportunities effectively to access financial capital at a lower cost.

“This alignment also reinforces international consistency while recognising the UK’s unique reporting landscape, which will help finance professionals connect sustainability with strategy, and that’s a game-changer for long-term value creation.”

Sustainability-related disclosures are reshaping finance, with finance professionals now central to managing and reporting on systemic risks across value chains. These insights enhance resilience, support access to capital, and fuel emerging roles like the Sustainability Controller – often a pathway to CFO.

Finance and accounting professionals will play a central role in the preparation, reporting and assurance of sustainability-related financial information. This expanding remit of finance teams brings with it a range of new responsibilities, including the need for robust data controls, cross-functional collaboration, and systems integration. Targeted and timely training is necessary for finance teams to lead in this evolving landscape.

To prepare, CIMA urges business leaders and finance professionals to:

• Understand the requirements and likely adoption timeline of the UK SRS S1 and S2

• Conduct a gap analysis against current practices

• Review internal governance and data systems

• Embed sustainability data into decision-making and reporting cycles

• Begin preparing for external assurance

• Participate in upskilling opportunities

AICPA and CIMA have developed two world-class online courses in partnership with the University of Oxford’s Saïd Business School. The ESG and Sustainable Financial Strategy Course and Oxford Sustainability Reporting and ESG Data Management Programme, provide insight into environmental, social, and governance principles and priorities and their crucial relationship to business strategy. They also help finance professionals develop, implement and enhance sustainability reporting strategies in their organisation, drive transparency, accountability, and credibility in corporate sustainability reporting, while achieving regulatory compliance.