REPORTING
July 2022 - Update on the International Sustainable Standards Board
July 2, 2022
Article Highlights
On November 3, 2021, The IFRS Foundation announced the creation of the International Sustainability Standards Board (ISSB).
Two proposed IFRS Sustainability Disclosure Standards have been published to date.
The ISSB has reached a quorum upon the recent appointment of six additional members to the ISSB.
July 18, 2022 - First public meeting of the ISSB.
Background
On November 3, 2021, The IFRS Foundation announced the creation of the International Sustainability Standards Board (ISSB) at the 2021 United Nations Climate Change Conference (COP26) in Glasgow, Scotland.
The ISSB sets the IFRS sustainability disclosure standards. It is the global setter for sustainability disclosures for financial markets.
The IASB and the ISSB will work together to ensure compatibility between IASB’s IFRS Accounting Standards and the ISSB’s IFRS Sustainability Disclosure Standards. Each Board will be independent.
Background
The proposed rule has been brought about in the context of the growth in climate action and standardization of climate-related disclosures. Canada, United Kingdom, Japan, New Zealand, Hong Kong and the European Union are all moving to adopt measures that are similar. In 2021, the Task Force on Climate-related Financial Disclosures (TCFD) had 2,600 companies across the world obtain voluntary guidance. In the past year, the International Sustainability Standards Board has been created by the International Financial Reporting Standards Foundation (IFRS).
Updates
In March of 2022, the ISSB published the first two proposed IFRS Sustainability Disclosure Standards. The ISSB is currently seeking feedback on the two proposed IFRS Sustainability Disclosure Standards.
As of July 2022, The appointment by the IFRS Foundation Trustees of the six additional members of ISSB has allowed the ISSB to reach a quorum.
On July 18, 2022, the ISSB is scheduled to hold its first public meeting in Frankfurt, Germany.
Key Takeaways
Tasks to help you prepare
To observe the July 18, 2022 first public meeting of the ISSB, you can access the live discussions at IFRS Foundation’s website.