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The International Financial Reporting Standards Foundation (IFRS) has announced the formation of the International Sustainability Standards Board (ISSB).
IFRS trustees announced the development to provide global financial markets with “high-quality” disclosures on climate and other sustainability issues.
The ISSB will develop IFRS Sustainability Disclosure Standards, including disclosure requirements that address companies’ impacts on sustainability matters relevant to assessing enterprise value and making investment decisions.
The IFRS said the formation of a new ISSB is to develop a global baseline of “high-quality” sustainability disclosure standards to meet investors’ information needs.
Additionally, ISSB standards will “enable companies to provide comprehensive sustainability information” for the global financial markets, said the IFRS.
This development “lays the technical groundwork” for a global sustainability disclosure standard-setter for the financial markets. The IFRS said it will “fulfil the growing and urgent demand” for streamlining and formalising corporate sustainability disclosures.
Richard Sexton and Robert K Steel, co-chairs of the Value Reporting Foundation Board, said: “Today’s announcement is a reflection of the changed world we live in—a world in which sustainability and long-term thinking are increasingly at the heart of business and investor decision-making.
“The Value Reporting Foundation Board believes the consolidation announced today will help deliver effective disclosures to drive global sustainability performance. We count on your continued collaboration as we embark on this exciting next step.”
Richard Samans, chairman of CDSB, and Paul Simpson, CEO of CDP, said: “We are delighted that the IFRS Foundation is forming the ISSB to drive forward the development of global standards for sustainability-related financial disclosures.
“The ISSB’s integration of CDSB will ensure that the new board has a strong foundation and can move rapidly building on existing best practice.”
