The IFRS Foundation has launched a guide titled “Voluntarily applying ISSB Standards—A Guide for Preparers,” announced during New York Climate Week.
This publication is designed to aid companies in adopting ISSB Standards on a voluntary basis, providing a valuable resource in jurisdictions lacking compulsory sustainability disclosure mandates. The guide not only assists companies in implementing these standards but also in communicating their progress to investors, ensuring transparency and consistency in sustainability reporting.
The ISSB Standards are increasingly recognized as essential tools for companies to align with global disclosure requirements. By adopting these standards, companies can provide a consistent and comparable basis for sustainability information, which is crucial for informed investment decisions. The guide complements other IFRS publications, such as IFRS S1 and IFRS S2, which focus on general sustainability and climate-related disclosures, respectively.
During the event, Carine Smith Ihenacho, Chief Governance and Compliance Officer at Norges Bank Investment Management and the Chair of the ISSB Investor Advisory Group (IIAG), emphasized the importance of consistent and comparable sustainability information across companies and over time. “For sustainability information to support investment decisions, risk management processes, and ownership activities across a diversified portfolio, it must be consistent and comparable across companies and over time,” she stated.
ISSB Chair Emmanuel Faber highlighted the challenges faced by companies using a variety of frameworks and standards that hinder comparability and decision-usefulness of sustainability-related information. The new guide aims to streamline these processes by helping companies transition from their current practices to a unified approach under the ISSB Standards.
The ISSB Investor Advisory Group, with 117 members from 62 leading global asset management firms, plays a vital role in shaping these standards. Representing over US$54 trillion in assets, these members bring a global perspective to the standard-setting process, ensuring the standards meet the diverse needs of investors across different markets.
Keep up with all the latest FinTech news here
Copyright © 2024 FinTech Global
