Several industry leaders have welcomed the release of the International Sustainability Standards Board’s (ISSB) final reporting standards yesterday – the standards IFRS S1 and IFRS S2 which provide a global baseline for sustainability disclosures.

Stephanie Pfeifer, chief executive officer of the Institutional Investors Group on Climate Change (IIGCC), said that the standards “create a globally consistent baseline that we must build upon both globally and locally to meet the evolving needs of business, investors and civil society.”

James Alexander, CEO of the UK Sustainable Investment and Finance Association (UKSIF), said that the standards “will help to deliver the coherent, global baseline of sustainability disclosures sought by our members.”

Larry Bradley, global head of audit at KPMG, added that the standards “have the potential for a hugely positive impact on the planet.”

He called on business leaders to “make the most of this momentous change and use the new standards to transparently demonstrate how your company is performing in reacting to the challenges that climate change brings.”

Kate Levick, associate director at E3G, said the standards “come at a critical moment for international action on sustainability and climate change.”

She said that “real success will depend on jurisdictions’ willingness to align with the ISSB standards, prove their interoperability, and elevate climate related disclosures that truly meet the needs of investors and issuers, and support the transition to net zero.”

Sharon Smith and Euan McVicar, climate and sustainability experts at Pinsent Masons, said that the ISSB’s decision to provide a package of reliefs for companies for the first year of implementation is “an important concession which we believe is more likely to result in the standards being successfully implemented.”

Overall, industry leaders have welcomed the release of IFRS S-1 and S-2 by the ISSB as a step forward in equipping investors with the information they need to allocate capital while assisting companies to better manage their sustainability-related risks and opportunities and communicate with investors.

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