On 31 March, the International Sustainability Standards Board (ISSB) published its first two proposed IFRS Sustainability Disclosure Standards which will form a global baseline of sustainability disclosures:
– IFRS S1 – General sustainability-related disclosure requirements
– IFRS S2 – Climate-related disclosure requirements
The proposals – exposure drafts – set out requirements for the disclosure of material information about a company’s significant sustainability-related and climate-related risks and opportunities that is necessary for investors to assess a company’s enterprise value.
The ISSB is seeking comments on the two proposed standards until 29 July. After the feedback is collected, the ISSB will review this feedback on the proposals during the second half of 2022 and aims to issue the new Standards by the end of the year, subject to the feedback.
Along with the release of the exposure drafts, the ISSB has set out its plan for how its work will build on the SASB Standards and for embedding SASB’s industry-based standards development approach into the ISSB’s standards development process.
Later this year, the ISSB will consult on its standard-setting priorities. It will seek feedback on the sustainability-related information needs of investors and on further development of industry-based requirements building on SASB Standards.
For more information, please see here.
On 13 July, ESMA published a letter containing its response to the ISSB’s Exposure Drafts IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures. For more information, please find the letter here.