IFSB Responds to ISSB Proposals on Sustainability Disclosures
The Council of the Islamic Financial Services Board (IFSB) responded to the International Sustainability Standards Board (ISSB) exposure drafts on general sustainability-related disclosures (IFRS S1) and climate-related disclosures (IFRS S2).
In its response, IFSB welcomed the progress of ISSB toward the development of a global baseline standard for sustainability and climate-related disclosures. IFSB expressed strong support for the convergence and harmonization of global standards on sustainability and climate-related risks and outlined certain suggestions for improvement. IFSB highlighted, among others, the need to
- clarify the definition of sustainability
- minimize the potential of green-washing and misleading reporting
- establish clearer boundaries on materiality to avoid subjective reporting
- clarify the application of proportionality to smaller entities
- issuance of sector-specific guidance
IFSB is concurrently working on developing sustainability-related standards for the Islamic financial services industry. IFSB plans to complement the work of international standard-setters including the ISSB, in addressing the specificities of Islamic finance as per its mandate.
Related Link: Press Release
Keywords: International, Banking, Islamic Banking, Disclosures, ESG, Climate Change Risk, Sustainable Finance, ISSB, Exposure Draft, Reporting, IFSB
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