PKF BBA presents at the School of International Financial Services
Sustainability is no longer a peripheral concern in financial services, it is rapidly becoming central to strategy, risk management, and regulatory compliance. This shift is becoming increasingly evident in corporate reporting, where sustainability disclosures are evolving from voluntary add-ons into essential components of financial transparency.
On 21 May, our Audit Director, Nicholas James, presented at the School of International Financial Services (SIFS) on International Sustainability Reporting Standards (ISRS) and their growing relevance across the sector.
Understanding ISRS: Laying the Groundwork for Global Alignment
The ISRS framework, developed by the International Sustainability Standards Board (ISSB), establishes a global baseline for sustainability-related financial disclosures. IFRS S1 and IFRS S2, covering general sustainability disclosures and climate-related disclosures respectively, are designed to bring clarity and comparability to reporting across industries and jurisdictions.
Although still voluntary, these standards are being actively reviewed by UK regulators and are expected to inform the development of the UK’s first Sustainability Reporting Standards. For financial services firms, early engagement with ISRS is a strategic imperative.
The Impact on Financial Services
For a sector built on risk, trust, and forward-looking analysis, sustainability reporting presents both challenges and opportunities. Financial institutions are being called to assess and disclose their exposure to sustainability-related risks across portfolios, operations, and value chains. These disclosures are expected to cover governance structures, strategic responses, risk assessment frameworks, and the measurement of progress through defined metrics and targets.
ISRS brings a clear structure to this process, aligning closely with existing global frameworks such as TCFD, GRI, and the Greenhouse Gas Protocol. Integrating sustainability disclosures into standard financial reporting cycles will not only support regulatory compliance but enhance investor confidence and improve long-term decision-making.
Preparing for What’s Next
The ISRS framework is set to expand further. The ISSB is actively exploring additional standards on human capital and biodiversity, areas that will become increasingly material in how organisations demonstrate resilience and long-term value creation.
From Compliance to Confidence: Practical Next Steps
PKF BBA encourages clients to view sustainability reporting not merely as a compliance obligation, but as a powerful tool for business transformation. Adopting ISRS should begin with:
- A thorough understanding of applicable frameworks
- Risk and materiality assessments to define reporting priorities
- The integration of sustainability metrics into governance and finance systems
- Careful evaluation of technology solutions to support data quality and auditability
- Considering the role of assurance, especially in light of new global standards such as ISSA 5000
Organisations that take these steps today will be best placed to meet investor and client expectations, and the regulatory demands of tomorrow.
A Trusted Partner in Evolving Regulation
As a leading audit and advisory firm within the Channel Islands and a member of the global PKF network, PKF BBA is committed to helping clients anticipate and respond to evolving reporting requirements. Our team brings deep technical expertise, practical implementation experience, and a future-focused approach to sustainability reporting.