Beyond Compliance: Why UK Asset Managers Are Pushing Back Against Mandatory Sustainability Disclosures
The UK government's consultation on adopting the IFRS S1 and S2 sustainability standards has met with significant industry resistance. The Investment Association, representing UK asset managers, argues there is insufficient evidence that mandatory disclosures add value for investors and that costs may outweigh benefits. This response highlights a deeper tension between global standardisation and local market pragmatism, questioning whether a 'comply or explain' model might better suit the UK's existing Sustainability Disclosure Requirements (SDR) framework. The debate goes beyond mere compliance, touching on the fundamental economics of ESG data, regulatory duplication, and the search for investor-relevant information versus box-ticking exercises.