Korea has been advised to extend the scope of its disclosures under the ISSB standards beyond just climate-related information.
According to Environmental Finance, this recommendation was part of a recent consultation response from the Asia Investor Group on Climate Change (AIGCC).
The group argued that Korea’s current approach, which could allow companies to opt out of industry-specific ISSB disclosures, might hinder the comparability of sustainability reports on an international and regional scale.
The AIGCC, which oversees more than $28tn in managed funds, has expressed concerns over the provisional measures proposed by the Korea Sustainability Standards Board (KSSB). Specifically, they are pushing for the mandatory inclusion of all relevant ISSB standards to ensure comprehensive and comparable sustainability reporting. Furthermore, the investor group has suggested that the KSSB accelerate the implementation of these standards. They recommend that mandatory reporting of Scope 1 and 2 greenhouse gas emissions should commence no later than 2026, with the option to report Scope 3 emissions in the first year of mandatory disclosure.
“KSSB’s current proposal risks sidelining critical industry-specific data that can significantly influence investment decisions and transparency,” Asia Investor Group on Climate Change CEO Rebecca Mikula-Wright said, emphasizing the need for mandatory, comprehensive disclosure standards.
KSSB’s consultation process is ongoing and is set to conclude on 31 August, leaving a narrow window for further inputs from stakeholders across the sustainability and investment spectrums.
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global
