Reporting Intelligence – February 2026
Our Reporting Intelligence pages are a treasure trove of insightful reads, we’ve done the hard work, so you can stay informed without the hassle.
This month, we explore FRC strategic report guidance, companies aligning with climate goals, updates to the Omnibus package, and the release of the Sustainability Reporting Standards (UK SRS).
FRC issues updated strategic report guidance for UK companies
The Financial Reporting Council (FRC) has released updated Guidance on the Strategic Report to assist UK entities in meeting company law reporting obligations. The guidance promotes high-quality, proportionate reporting tailored to each entity’s size and complexity, helping businesses communicate cohesively with shareholders and stakeholders. Updates reflect recent changes, including the UK Corporate Governance Code 2024 revisions, legislative amendments to directors’ report disclosures, and developments in sustainability reporting. The FRC has also published updated scoping tables for Companies Act 2006 compliance. The revised guidance features improved structure and accessibility, enabling companies to present clearer, more informative accounts of their performance, risks, opportunities and future prospects.
Read the full guidance here
MSCI study reveals less than 40% of listed companies aligned with climate goals
MSCI’s latest Transition Finance Tracker reveals that fewer than 40% of global listed companies have emissions trajectories aligned with limiting temperature increases to under 2°C above pre-industrial levels. Only 12% align with the 1.5°C target, whilst 62% exceed 2°C trajectories. Developed nations like Italy, Germany, France and Japan show lower temperature trajectories, whereas emerging markets including Saudi Arabia, Indonesia, India and China demonstrate significantly higher projections. Despite 60% of companies publishing climate commitments and 32% setting net-zero targets, overall trajectories imply 3°C warming. Positively, SBTi-approved targets increased to 19% in 2025, and climate-related disclosure continues improving.
Access the report here
UK releases finalised Sustainability Reporting Standards (UK SRS)
The UK government has published its finalised UK Sustainability Reporting Standards (UK SRS), comprising UK SRS S1 (sustainability-related) and UK SRS S2 (climate-related), closely aligned with the IFRS Foundation’s ISSB standards. Currently endorsed for voluntary use, mandatory adoption remains under active consideration. The FCA is consulting on requirements for listed companies, whilst the government has signalled it will assess whether to extend obligations to private companies as part of a forthcoming corporate reporting modernisation consultation.
Key differences from IFRS standards include the removal of fixed timeframes for Scope 3 emissions and climate-first reporting reliefs, leaving timelines to future regulators. The FCA’s consultation proposes a one-year Scope 3 relief on a “comply or explain” basis thereafter. A broader corporate reporting modernisation consultation is expected shortly.
Access the finalised standards here
EU gives final approval to Omnibus package, cutting sustainability reporting and due diligence requirements
EU member states have given final approval to the “Omnibus I” package, dramatically scaling back the bloc’s corporate sustainability reporting and due diligence requirements. The agreed changes go significantly further than the European Commission’s original proposals, raising the threshold for the Corporate Sustainability Reporting Directive (CSRD) to companies with over 1,000 employees and €450 million in revenue, removing an estimated 90% of companies from scope. The Corporate Sustainability Due Diligence Directive (CSDDD) faces even steeper cuts, with thresholds raised to 5,000 employees and €1.5 billion in revenue. Additional changes include removing the CSDDD’s climate transition plan obligation, eliminating its EU-wide liability regime, capping penalties at 3% of global revenues, and delaying compliance to July 2029.
Read the full update here
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If you’d like to discuss this, or any other subject, please get in touch with Richard Costa at richardc@gather.london
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