ISSB Issues Update on Its Work Toward Sustainability Disclosures
The International Sustainability Standards Board (ISSB) announced the formation of a working group of jurisdictional representatives to establish dialog for enhanced compatibility between the ISSB exposure drafts that are open for comment until July 29, 2022 and the ongoing jurisdictional initiatives on sustainability disclosures.
The formation of the working group is part of an extensive program of outreach activity designed to encourage feedback on and engagement with ISSB’s consultation from all jurisdictions and stakeholder groups. Jurisdictional standard-setting in the field of sustainability-related financial disclosures is a relatively new discipline and many jurisdictions are participating in this process at scale for the first time. Many of these developments and associated public consultations are occurring in parallel. These ongoing activities present an opportunity to align, as much as possible, requirements at a jurisdictional and international level to deliver the global baseline that has been welcomed by public authorities and market participants, including the G20, the G7, the International Organization of Securities Commissions, and the Financial Stability Board. A new advisory body—the Sustainability Standards Advisory Forum—will be created by ISSB during the next quarter to facilitate regular dialog with, and high-level advice from, a broad set of jurisdictions.
In addition, to support timely development of the global baseline, ISSB has formed a working group composed of representatives from several jurisdictions actively engaged in standard-setting in the field of sustainability disclosures. The working group will discuss compatibility of those initiatives to establish how the global baseline, fully responding to the needs of global market participants, can contribute to optimizing reporting efficiency for companies in those jurisdictions and how those jurisdictions can build upon the global baseline according to their needs. Members of the working group are the Chinese Ministry of Finance, the European Commission, the European Financial Reporting Advisory Group, the Japanese Financial Services Authority, the Sustainability Standards Board of Japan Preparation Committee, the United Kingdom Financial Conduct Authority, and the U.S. Securities and Exchange Commission. Working group meetings will take place in May and July. Input from the working group will also be considered by ISSB in public meetings as part of its deliberation of all feedback received during the consultation period.
Keywords: International, Accounting, Banking, Insurance, Securities, Disclosures, Reporting, Sustainable Finance, ESG, Climate Change Risk, Sustainability Standards Advisory Forum, SSAF, IFRS, ISSB
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