Featured Product

    ISSB Updates Address ESG Issues while IASB Consults on Impairments

    May 30, 2023

    The International Sustainability Standards Board (ISSB) is seeking feedback, until August 09, 2023, on the exposure draft that sets out the methodology proposed by ISSB to amend the Sustainability Accounting Standards Board (SASB) Standards' metrics to enhance their international applicability. ISSB also published the Request for Information titled "Consultation on Agenda Priorities" to seek feedback on its priorities for the next two-year work plan; the feedback period closes on September 01, 2023. Furthermore, in an upcoming development, the International Accounting Standards Board (IASB) launched a call for stakeholder feedback on the impairment requirements in IFRS 9 and the related disclosures. This request for feedback constitutes the second aspect of the post-implementation review of the IFRS 9 Financial Instruments standard and its feedback period ends on September 27, 2023. The first aspect of the post-implementation review involved classification and measurement requirements while the third aspect will cover hedge accounting.

    The recent ISSB consultation on aligning the existing SASB standards to improve their international applicability is one part of the efforts of the international standard-setting bodies to globally harmonize the rules for sustainability and climate risk disclosures. The exposure draft sets out the methodology for updating references to jurisdiction-specific laws and regulations in the SASB Standards to improve their international applicability. The draft also includes the proposed approach for updating the digital SASB Standards Taxonomy to reflect amendments made to the SASB Standards. However, the proposed scope of application of the methodology described in this draft excludes all SASB Standards metrics included in Exposure Draft IFRS S2 Climate-related Disclosures (Draft IFRS S2) published in March 2022. This is because the Draft IFRS S2 sets out proposed amendments to the climate-related metrics from the SASB Standards. ISSB will consider feedback on this Exposure Draft and decide how to proceed with the proposed amendments to the SASB Standards and corresponding updates to the SASB Standards Taxonomy. ISSB plans to promptly issue any related amendments to the SASB Standards and the SASB Standards Taxonomy to facilitate the implementation and application of IFRS S1. The SASB standards serve as an important source of guidance in the general requirements standard of ISSB (IFRS S1) by helping companies to identify sustainability-related risks and opportunities and to provide appropriate disclosures beyond climate (which is addressed by IFRS S2).

    Another development from ISSB involves the priorities in its next two-year workplan. With this Request for Information on Agenda Priorities, ISSB also reflects on its mission to issue ISSB Standards that address "climate first, but not climate only." Through this
    consultation, ISSB aims to research topics and, if appropriate, issue Standards that will ensure entities meet the information needs of investors on sustainability topics beyond climate. ISSB seeks feedback on four proposed projects:

    • Three research projects on sustainability-related risks and opportunities associated with biodiversity, ecosystems, and ecosystem services; human capital; and human rights
    • One research project on integration in reporting to explore how to integrate information in financial reporting beyond the requirements related to connected information in IFRS S1 and IFRS S2

    ISSB has also published this Request for Information Consultation on Agenda Priorities to gather views on the strategic direction and balance of ISSB activities; the criteria for assessing which sustainability-related matters (including topics, industries and activities) to prioritize and add to the ISSB work plan; and the scope and structure of potential new research and standard-setting projects. The feedback received will inform the ISSB work plan and activities for the two-year period commencing 2024. The ISSB expects to discuss feedback on this Request for Information at public meetings in the second half of 2023.

     

    Keywords: International, Banking, IFRS 9, ESG, Climate Change Risk, Reporting, Accounting, Financial Instruments, Taxonomy, SASB Standards, Disclosures, IFRS, IASB, ISSB

    Featured Experts
    Related Articles
    News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News
    News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News
    News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    News

    Global Agencies Focus on ESG Data, Climate Litigation and Nature Risks

    At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.

    September 14, 2023 WebPage Regulatory News
    News

    ISSB Standards Shine Spotlight on Comparability of ESG Disclosures

    The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures

    August 22, 2023 WebPage Regulatory News
    News

    EBA Issues Several Regulatory and Reporting Updates for Banks

    The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.

    August 10, 2023 WebPage Regulatory News
    News

    BCBS Proposes to Revise Core Principles for Banking Supervision

    The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.

    August 04, 2023 WebPage Regulatory News
    News

    US Proposes Final Basel Rules, Transition Period to Start in July 2025

    The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.

    August 04, 2023 WebPage Regulatory News
    News

    FSB Report Outlines Next Steps for Climate Risk Roadmap

    The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.

    August 04, 2023 WebPage Regulatory News
    News

    EBA Plans on Ad-hoc ESG Data Collection and Climate Scenario Exercise

    The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.

    July 31, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8931