Date posted: 2/10/2020

IFAC calls for the creation of a new sustainability standards board

IFAC has called for the creation of a new sustainability standards board – the “ISSB” ¬– that would exist “alongside” the IASB under the IFRS Foundation

In brief

  • IFAC says the IFRS Foundation should create an International Sustainability Standards Board (“ISSB”)
  • The proposed ISSB should adopt a “building blocks” approach, leveraging off leading initiatives, including those of the CDP, CDSB, GRI, IIRC, and SASB
  • The ISSB would address a growing demand from investors and others for a reporting system that delivers relevant and reliable information

IFAC has called for the creation of a new sustainability standards board that would exist “alongside” the IASB under the IFRS Foundation. The proposed board would address a growing demand from investors, policy makers and regulators for a reporting system that delivers consistent, comparable, reliable, and “assurable” information relevant to enterprise value creation, sustainable development and evolving stakeholder expectations.

In a new publication, Enhancing Corporate Reporting: The Way Forward, IFAC says that “the time for a global solution is now,” and the IFRS Foundation should create an International Sustainability Standards Board (“ISSB”), to develop global standards and “rationalise the current fragmented ecosystem.”

IFAC says the proposed ISSB should adopt a “building blocks” approach, leveraging off leading initiatives, including those of the CDP, CDSB, GRI, IIRC, and SASB. These blocks include:

  • Requirements for material non-financial information focused on company performance, risk profile, economic decisions and enterprise value creation
  • Collaborating with respect to reporting requirements designed to address sustainable development and impacts on the economy and environment
  • Accommodating supplemental jurisdictional requirements to support local public accountability

IFAC : the way forward

Enhancing Corporate Reporting: The Way Forward -11 September 2020. IFAC calls for a new Sustainability Standards Board alongside the IASB.

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