Featured Product

    IFRS Announces Developments Related to Sustainability Disclosures

    November 08, 2021

    The International Financial Reporting Standards (IFRS) Foundation Trustees have announced three significant developments to provide the global financial markets with high-quality disclosures on climate and other sustainability issues. These developments constitute the formation of a new International Sustainability Standards Board (ISSB), the consolidation of Climate Disclosure Standards Board and Value Reporting Foundation into a new board by June 2022, and the publication of prototype climate and general disclosure requirements. Together, these developments fulfill the growing and urgent demand for streamlining and formalizing corporate sustainability disclosures.

    The ISSB will develop IFRS Sustainability Disclosure Standards, including disclosure requirements that address companies’ impact on sustainability matters relevant to assessing enterprise value and making investment decisions. The ISSB standards will enable companies to provide comprehensive sustainability information for the global financial markets. The standards will be developed to facilitate compatibility with requirements that are jurisdiction-specific or aimed at a wider group of stakeholders. The ISSB will build on the work of existing investor-focused reporting initiatives to become the global standard-setter of sustainability disclosures for the financial markets. To achieve this goal, the IFRS Foundation has reached commitments with the Climate Disclosure Standards Board and the Value Reporting Foundation to consolidate their technical expertise, content, staff, and other resources with the IFRS Foundation. The technical standards and frameworks of the Climate Disclosure Standards Board and the Value Reporting Foundation, along with those of the Task Force on Climate-related Financial Disclosures (TCFD) and the Forum Stakeholder Capitalism Metrics, are intended to provide a basis for the technical work of the new board. 

    Recognizing the urgency and the desire to provide the ISSB with a solid foundation on which to start its work, the Trustees created the Technical Readiness Working Group. The working group has concluded its work on two prototype documents—one that focuses on climate-related disclosures that build on the TCFD recommendations and includes industry-specific disclosures and another that sets out general sustainability disclosures. The ISSB will consider the prototypes as part of its initial work program. The Trustees are at advanced stages in appointing a Chair and Vice-Chair(s) to the ISSB. The Trustees will commence shortly a search for the additional board positions, up to the full complement of 14 members. The ISSB’s work is expected to commence as soon as the Chair and Vice-Chair(s) have been appointed and to begin with public consultations to inform the ISSB’s work plan and on proposals informed by recommendations from the Technical Readiness Working Group. The G20 Leaders and the Financial Stability Board have both welcomed the IFRS Foundation’s work program to develop global baseline standards for sustainability disclosures. 

    In addition, the Basel Committee on Banking Supervision (BCBS), the Canadian Securities Administrators (CSA), and the UK government have also welcomed the establishment of ISSB. In parallel with the ISSB's work, BCBS will explore using Pillar 3 of the Basel framework to promote a common disclosure baseline for climate-related financial risks across internationally active banks. This work will consider the availability and reliability of sufficiently granular data for banks and their counterparties, and of defined risk metrics. Additionally, Ashley Alder, Chairman of IOSCO, welcomed the publication by the IFRS Foundation of the prototype for the Climate Disclosure standard to be finalized in 2022. IOSCO notified that, by the end of 2021, it will have published its detailed analysis of the disclosure issues facing both issuers and asset managers and its assessment of sustainability data and ratings. In 2022, it will focus on a careful assessment of the ISSB’s draft climate disclosure standard, in parallel with stakeholder consultations by the ISSB. IOSCO intends to endorse the standard before the end of 2022 if it is satisfied that the standard sets a practical and effective global baseline for climate disclosures to financial markets across the globe.

     

    Related Links

    Keywords: International, Banking, Insurance, Securities, Sustainability Standards Board, ESG, COP26, Climate Change Risk, Disclosures, TCFD, Pillar 3, Basel, IOSCO, IFRS, HM Treasury, ISSB

    Featured Experts
    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514