Background

The Financial Reporting Council (FRC) has launched its first market study to examine the UK market for sustainability assurance services.

The study into the market for the assurance of sustainability reporting will focus on how well the UK sustainability assurance market is functioning, whether this market is delivering desirable outcomes including high quality assurance with minimal burdens and costs on business, and how the market may develop in the future. The market study will centre on the impact of sustainability assurance across UK companies, considering how sustainability assurance impacts companies, investors and the wider assurance market.

Specifically, the key areas that the market study will explore include:

• Choice, quality and competition in the sustainability assurance market
• Capacity constraints and barriers to entry or expansion
• Potential impacts from changing international regulations
• Any interplay between the sustainability assurance and statutory audit market

The market study is expected to conclude in early 2025.

Status of the project

The market study was launched in March 2024.  The FRC invites all interested parties to submit comments and evidence on the sustainability assurance market by 13 June 2024.