The International Sustainability Standards Board (ISSB) will take over the responsibilities of the Task Force on Climate-related Financial Disclosures (TCFD) starting from next year.
This shift comes in response to a formal request made by the FSB.
This change marks a significant advancement in the ongoing efforts towards consolidation of sustainability reporting standards. It follows the recent unveiling of the ISSB’s global standards for sustainability and climate reporting last month.
The transition of responsibilities from TCFD to the ISSB signifies a notable change in the landscape of climate and sustainability disclosure. This change offers a glimpse into the proactive steps being taken towards unified sustainability reporting. Additionally, it highlights the rising influence of the ISSB since its global standards for sustainability and climate reporting were issued.
Earlier this year, G7 leaders convened at a summit in Hiroshima, Japan, reiterating their commitment to the Paris Agreement’s goal of limiting global temperature rise to 1.5°C.
In line with this commitment, they pledged to support the International Sustainability Standards Board’s (ISSB) development of sustainability and climate-related corporate reporting standards. Alongside, G7 also underlined their stance against the construction of new unabated coal-fired power plants and promoted initiatives to enhance climate transition finance for developing countries.
In the meeting, they acknowledged the necessity of mobilising finance to facilitate emissions reductions and climate resilient development. Particular emphasis was placed on private finance’s role in fostering clean technologies and activities.
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