Below is an excerpt from ISS Corporate Solution’s recently released paper “ISSB Advances Drive Towards Global Sustainability Reporting Standards”. The full report is available for download from the ISS Corporate Solutions (ICS) online library.
Two new announcements from the IFRS Foundation, which oversees the International Accountability Standards Board (IASB), may at least start to shrink the alphabet soup of sustainability standards groups. Firstly, the International Sustainability Standards Board (ISSB), which was established at COP26 to develop global sustainability disclosures in November 2021, initiated consultation periods for its first two proposed standards. Secondly, the ISSB also announced plans for “building on the Sustainability Accounting Standards Board (SASB) standards and for embedding SASB’s industry-based standards development approach into the ISSB standards development process.”
- The ISSB released two standards for consultation – on general sustainability disclosures and on climate-related disclosures
- The proposed standards build upon the Task Force on Climate-Related Financial Disclosures (TCFD) framework, outlining reporting requirements related to governance, strategy, risk management, and metrics and targets
- The drafts are open for comment until July 29, 2022, and several comment letters are already publicly available on the ISSB website
- A new XBRL taxonomy initiative will bring together the IFRS, the ISSB and the European Financial Reporting Advisory Group for the new standards
By: Paul Hodgson, Senior Editor, ISS Corporate Solutions