What Is ISSB?
The International Sustainability Standards Board (ISSB) was designed to deliver a comprehensive global baseline of sustainability-related disclosure standards, and is responsible for developing and approving International Financial Reporting Standards (IFRS).
The International Sustainability Standards Board (ISSB) was formed in 2021 and is responsible for developing and approving International Financial Reporting Standards (IFRS). The ISSB is overseen by the IFRS Foundation. The IFRS created the ISSB to address strong demand for an organization focused on sustainability and developing high quality and consistent standards to hold companies accountable.
What does ISSB do?
The ISSB is focused on developing sustainability standards that meet the needs of investors and financial markets. It has four objectives:
Developing standards for a global baseline of sustainability disclosures
Meeting the information needs of investors
Enabling companies to provide comprehensive sustainability information to global capital markets
Facilitating interoperability with disclosures that are jurisdiction-specific and/or aimed at broader stakeholder groups.
The ISSB works closely with other organizations such as the Global Reporting Initiatives (GRI).
When will reporting begin and what will be required?
Companies will begin to be required to report in January 2024 with some companies being rolled in later—in January 2025 and January 2026. Companies should be evaluating their internal systems and data-gathering processes now to ensure they will be prepared when they are required to begin reporting. They should also familiarize themselves with the proposed standards.
Why is reporting important?
Sustainability has become an important issue for companies of all types and sizes as the environment, social issues, and corporate governance have risen in importance for consumers, customers, and employees. This type of reporting is designed to provide investors with information to make important decisions related to capital investments, providing a way to compare companies across multiple jurisdictions.
Read more on ISSB and corporate reporting:
