A new global sustainability standard The International Sustainability Standards Board (ISSB) was announced by the Trustees of the IFRS Foundation in November 2021 to address the need for a consistent and comparable global standard for sustainability reporting.
The four main objectives The ISSB has four key objectives: to develop standards for a global baseline of sustainability disclosures, to meet the information needs of investors, to enable companies to provide comprehensive sustainability information to global capital markets, and to facilitate interoperability with disclosures that are jurisdiction-specific and/or aimed at broader stakeholder groups.
Two levels of reporting The ISSB standards include two levels of reporting: IFRS S1, which requires disclosure of any meaningful information related to sustainability risks and opportunities that could be weighed by primary users of general-purpose financial reporting, and IFRS S2, which requires climate-related scenario analysis and reporting on climate resilience.
Interoperable with other standards The ISSB standards are designed to build on existing reporting standards and frameworks, and to enhance interoperability with existing jurisdictional and international standards to better support adoption.
Effective for annual reporting periods beginning on or after 1 January 2024 The ISSB standards are not mandatory for companies to report against, but they are aimed at becoming the new norm for sustainability reporting. The standards will be effective for annual reporting periods beginning on or after 1 January 2024.
The ISSB standards represent an important step forward in sustainability reporting, providing a globally consistent and comparable standard for companies to follow.
Check out our ISSB blog series where we help you understand how the ISSB will impact your sustainability reporting.
Comments