Sustainability Disclosure Requirements(SDR) · Climate Dictionary

Sustainability Disclosure Requirements (SDR) refer to a set of rules and regulations that require companies and financial institutions to disclose information about their environmental, social, and governance (ESG) practices and impacts. These requirements are being implemented in various jurisdictions to improve transparency, aid decision-making for investors, and promote sustainable business practices.

Global standardization efforts

The International Sustainability Standards Board (ISSB) is working to create a global baseline for sustainability-related disclosure standards
This aims to reduce fragmentation in reporting requirements across different jurisdictions
The standards focus on enterprise value creation and are designed to work alongside jurisdiction-specific requirements

Scope and coverage

SDRs typically cover a wide range of sustainability topics, including climate change, biodiversity, human rights, and governance
They often apply to both public and private companies, as well as financial institutions
Requirements may vary based on company size, sector, and jurisdiction

Alignment with other frameworks

SDRs often align with or incorporate existing frameworks such as:

1. Task Force on Climate-related Financial Disclosures (TCFD)
1. Global Reporting Initiative (GRI)
1. Sustainability Accounting Standards Board (SASB)

This alignment aims to reduce reporting burden and improve comparability

References

How the new financial services reporting obligations work — BDO UK The new rules follow the FCA’s review of how 12 AFMs complied with the current ESG guiding principles in relation to ESG and The SDR Regime introduces an anti-greenwashing rule which imposes a requirement for all regulated firms to ensure that sustainability-related claims in all…
Sustainability Disclosure Requirements: Implementation — GOV.UK The UK’s Sustainability Disclosure Requirements (SDR) framework builds on global best practice and leading standards, supporting the UK’s ambition to become the world’s first Net Zero Aligned Financial Centre.
SDR and investment labels — FCA The SDR is a comprehensive regulatory framework that mandates companies and financial institutions to disclose their impacts, both positive and negative, on the environment and society.