The FRC wants to ensure the market is working effectively, producing high quality assurance to support the production of useful, reliable reporting for investors, without creating undue burdens and costs on business. They also want to understand if, and how, any developments in this market could affect the UK’s statutory audit market and ensure there is effective competition to help drive economic growth.

The FRC’s approach to this study will be based around the following three themes:

1. Choice and competition: To understand whether if UK companies have sufficient choice of sustainability assurance provider, what drives their choices, and whether if they have the information, they need to make informed choices and receive high-quality assurance, as well as how choices affect competition, and how competition works in this market.
2. Market capacity, opportunities, and barriers to entry/expansion: FRC want to identify whether if there is sufficient capacity amongst suppliers to meet demand for sustainability assurance. Given the skilled staff required to deliver sustainability assurance, they will explore whether there are any labour market issues, and whether firms see opportunities in this market and if there are any barriers to entry and expansion.
3. Regulatory framework: FRC want to understand how the changing regulatory requirements internationally could affect the UK’s sustainability assurance market, and are interested in stakeholders’ views on what, if any, developments they would like to see in the UK market.

Findings from the study will inform the FRC’s wider policy and work related to sustainability assurance and may inform any future Government policy relating to sustainability assurance.

For further information please refer to the FRC's consultation document and the market study launch information sheet. Closing date for responses is 13 June 2024.

ICAEW will be responding to the consultation. We’d be really pleased to hear your thoughts on our survey questions, which will assist with our response to the FRC. If you would like to contribute more, whether you are in business or in practice, and have comments on the full eight questions the FRC is consulting on, please contact Cecilia May.