IFRS Foundation announces International Sustainability Standards Board
While world leaders meet in Glasgow for COP26, the UN global summit addressing the critical and urgent issues of climate change, the IFRS Foundation Trustees announced three important developments to provide the global financial markets with high-quality disclosures on climate and other sustainability topics Tweet This!:
- The formation of a new International Sustainability Standards Board (ISSB), to develop—in the public interest—an all-inclusive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs
- A commitment by leading investor-focused sustainability disclosure organisations to consolidate into the new board: The IFRS Foundation is to complete consolidation of the Climate Disclosure Standards Board (CDSB an initiative of CDP) and the Value Reporting Foundation (VRF, which houses the Integrated Reporting Framework and the SASB Standards) by June 2022
- The publication of prototype climate and general disclosure requirements developed by the Technical Readiness Working Group (TRWG), formed by the IFRS Foundation Trustees to undertake preparatory work for the ISSB.
The Value Reporting Foundation believes these developments create the necessary institutional arrangements and lay the technical groundwork for a global sustainability standard-setter for financial markets, meeting the growing and urgent demand for streamlining and formalising corporate sustainability disclosures.
Commenting on the announcement, Richard Sexton and Robert K Steel, Co-Chairs of the Value Reporting Foundation, said:
“Today’s announcement is a reflection of the changed world we live in – a world in which sustainability and long-term thinking are increasingly at the heart of business and investor decision-making. This is a transformation that both the IIRC and SASB helped lead, made possible by the many thousands of stakeholders who volunteered time and offered resources to develop the Integrated Thinking Principles, Integrated Reporting Framework and SASB Standards that are today used by businesses and investors around the world. The Value Reporting Foundation Board believes the consolidation announced today will help deliver effective disclosures to drive global sustainability performance. We count on your continued collaboration as we embark on this exciting next step.”
Also read:
GRI – Moves to expand disclosure for financial markets are welcome
Sustaincase comments/ questions
- Will the new framework address the needs of all stakeholders with proper stakeholder engagement or just investors?
- Focus on business success has brought us to where we are now. For example, Oil and Gas companies were/are successful.
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References:
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