ISSB furthers sustainability disclosure harmonisation with focus on transition planning

This week the International Sustainability Standards Board (ISSB) announced plans for harmonising the sustainability disclosure landscape during the IFRS Foundation Conference at London Climate Action Week. ISSB Chair Emmanuel Faber unveiled the board’s new two-year work plan, announcing partnerships as part of a continued effort to streamline global sustainability reporting.

Key strategic partnerships with the Transition Plan Taskforce, GHG Protocol, CDP, Taskforce on Nature-related Financial Disclosures (TNFD), and Global Reporting Initiative (GRI) all bolster harmonisation across the sustainability disclosure field.

The ISSB will take over the Transition Plan Taskforce’s materials, integrating them into the IFRS Sustainability Knowledge Hub to develop globally applicable educational resources. These resources will be tailored to maintain compatibility with IFRS S2, focusing on climate-related risks and opportunities that affect an entity’s prospects. This approach will ensure that investors and financial markets receive comprehensive and relevant information without altering IFRS S2 requirements. Looking ahead, the ISSB may enhance IFRS S2’s application guidance, using the Transition Plan Taskforce’s materials as a foundation.

With sustainability reporting becoming more established around the world, and significant jurisdictions providing suitable taxonomies and finalised standards, eyes are increasingly turning to harmonisation. The ISSB’s initiative is welcome in this space – improved alignment between standards will not only reduce the reporting burden, but help simplify the analysis and, crucially, comparison of large volumes of quite complex data.

For more details on the ISSB’s new work plan and strategic partnerships, read the announcement here.

Source: XBRL News June 28, 2024
ISSB furthers sustainability disclosure harmonization