The International Sustainability Standards Board (ISSB) has drawn a formal line under its 2023 consultation on its agenda priorities for the next two years with the release of a feedback statement on the process.
ISSB chair Emmanuel Faber said: “As we embark on our new two-year work plan […] I am grateful to our partners in the sustainability reporting landscape for their commitment to delivering an efficient, effective sustainability disclosure system for capital markets.”
The document release confirms that the board will focus on implementing IFRS S1 and S2, which address general reporting requirements and climate change, respectively.
According to the board, a major “focus on this activity is essential to creating a global baseline of sustainability-related financial disclosures.
This effort will include developing educational materials, convening a Transition Implementation Group to address implementation challenges, and monitoring relevant standards and frameworks.
Additionally, the board said it would also support capacity-building programmes and promote the IFRS Sustainability Disclosure Taxonomy for efficient digital reporting.
Alongside implementation support, the board has also committed to updating the Sustainability Accounting Standards Board (SASB) standards. Those standards, which cover some 77 industries, now form an essential source of guidance for companies applying IFRS S1.
The ISSB launched its agenda consultation last May on a four-month comment deadline.
As for standard-setting activities, the board will tackle research projects looking into biodiversity, ecosystems and ecosystem services, and human capital.
“The aim of a research project is to explore the feasibility and necessity of developing ISSB requirements related to particular sustainability‑related matters, taking into account investors’ information needs and the likely costs for companies of preparing such information,” it said.
Over the next two years, the board said it will devote the remainder of its capacity to so-called connectivity – the linkage between financial and non-financial reporting – and supporting the application of IFRS S1 and S2.
Additionally, it will put resources into ‘interoperability’ or engaging with other sustainability rule-making bodies.
Moreover, alongside meeting the informational needs of investors, the ISSB plans to work toward delivering “proportionate and scalable and can therefore be applied by companies with a range of capabilities and preparedness”.
Finally, the board has also confirmed it will not tackle the potentially vexed issues of human rights.
The ISSB said that although it “is not adding a standalone project on human rights-related risks and opportunities to its work plan, it will have the opportunity to consider this matter in its work on human capital-related risks and opportunities and on enhancing the SASB standards”.
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