The ISSB is poised to transform sustainability reporting. In this article, we share the top 10 things you need to know about the ISSB standards.
#10 Capacity building partnership
The ISSB not only sets standards, but also aims to support countries in developing the necessary resources for consistent reporting on sustainability. This partnership helps both developed and emerging economies.
#9 Compatibility with other reporting
The ISSB collaborates with the Global Reporting Initiative (GRI) to ensure its requirements align with GRI standards. This reduces the reporting burden for companies using both ISSB and GRI Standards.
#8 Rigorous development process
The ISSB Standards are created through an inclusive and transparent process, similar to the one used for accounting standards. They receive input from stakeholders worldwide, and all documents and decisions are available online.
#7 Connection to financial statements
ISSB Standards are designed to be presented alongside financial statements as part of the same reporting package. They work well with any accounting requirements and build upon IFRS Accounting Standards, used in over 140 jurisdictions.
#6 Effective communication
ISSB Standards help companies effectively communicate how they identify and manage risks and opportunities related to sustainability. It provides reliable information to investors on a short, medium, and long-term basis.
#5 Avoiding duplicate reporting
The ISSB’s approach ensures global comparability in financial markets, while allowing different regions to add their own requirements if needed. This avoids the burden of reporting the same information multiple times.
#4 Consolidating existing efforts
IFRS S1 and IFRS S2 bring together various sustainability reporting frameworks like TCFD, SASB, CDSB, Integrated Reporting, and World Economic Forum metrics. This simplifies reporting and avoids unnecessary complexity.
#3 Useful information
ISSB Standards focus on providing only important and relevant information to investors. They prioritise material facts that help investors make decisions. Companies can gradually disclose their sustainability efforts, starting with climate-related information.
#2 International support
The ISSB has strong backing from investors, companies, policymakers, and regulators worldwide, including organisations like IOSCO, the Financial Stability Board, the G20, and the G7 Leaders.
#1 Global standards
The ISSB sets rules that companies and investors can use worldwide to disclose their sustainability practices in the financial markets. Additional requirements can be added by specific regions, but there’s a common global baseline.
