Featured Product

    IFRS Consults on Global Approach to Sustainability Reporting

    September 30, 2020

    IFRS launched a consultation to assess the demand for global sustainability standards. If demand is found to be strong, the aim is also to assess whether and to what extent IFRS might contribute to the development of such standards. The consultation paper sets out possible ways through which IFRS might contribute to the development of global sustainability standards by broadening its remit beyond the development of financial reporting standards and using its experience in international standard-setting. One possible option outlined in the paper is for IFRS to establish a new Sustainability Standards Board. The consultation is open for comments until December 31, 2020.

    Out of the possible options set out in the consultation paper, IFRS considers that the best option would be to create a Sustainability Standards Board and become a standard-setter working with existing initiatives and building on them. Such an action by the IFRS Foundation could lead to an approach that seeks to harmonize and streamline sustainability reporting, which could benefit stakeholders of the IFRS Foundation and benefit sustainability reporting. The consultation paper also sets out critical success factors for the creation of a new board, including achieving sufficient support from public authorities and market participants, working with regional initiatives to achieve global consistency and reduce complexity in the reporting landscape, achieving the appropriate level of funding, and ensuring that the current mission of the IFRS is not compromised. 

    The objective of Sustainability Standards Board would be to develop and maintain a global set of sustainability reporting standards, initially focused on climate-related risks. Such standard-setting would make use of existing sustainability frameworks and standards. The new board could leverage and adapt the standard-setting process, due process procedures, and network of IFRS. The board could promote the consistent use and application of the new sustainability reporting standards and contribute to international collaboration, cooperation, and coordination among sustainability reporting bodies, governments, regulators, and other stakeholders to achieve further convergence. The new board could operate alongside IASB under the same three-tier governance structure, build on existing developments, and collaborate with other bodies and initiatives in sustainability, focusing initially on climate-related matters. The proposed establishment of the Sustainability Standards Board within the institutional and governance structure of the IFRS Foundation could achieve the objectives of developing a framework for sustainability reporting that is coherent with, and connected to, financial reporting.


    Comment Due Date: December 31, 2020

    Keywords: International, Banking, Securities, Insurance, ESG, Sustainability Standards Board, Reporting, Climate Change Risk, IFRS, IASB

    Featured Experts
    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582