June 27, 2023
ISSB Issues First Sustainability Standards
They are here! Yesterday, the International Sustainability Standards Board (ISSB) rolled out its inaugural standards—IFRS S1 and IFRS S2. As you may recall, the ISSB was established in November 2021 at COP26 to develop a comprehensive global baseline of sustainability disclosures. ISSB consolidated the CDSB and the Value Reporting Foundation (the combination of SASB and IIRC) under the auspices of the IFRS Foundation.
IFRS S1 provides a set of disclosure requirements designed to enable companies to communicate to investors about the sustainability-related risks and opportunities they face over the short, medium and long term. IFRS S2 sets out specific climate-related disclosures and is designed to be used with IFRS S1. The ISSB notes in its announcement that both IFRS S1 and IFRS S2 fully incorporate the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The ISSB’s announcement notes:
The ISSB Standards are designed to ensure that companies provide sustainability-related information alongside financial statements—in the same reporting package. The Standards have been developed to be used in conjunction with any accounting requirements. They are also built on the concepts that underpin the IFRS Accounting Standards, which are required by more than 140 jurisdictions. The ISSB Standards are suitable for application around the world, creating a truly global baseline.
For more coverage of these new ISSB standards, sign up today for PractialESG.com. You can begin your membership today online, or you can contact a Specialist at Sales@CCRcorp.com or at 1-800-737-1271 for assistance.
– Dave Lynn