Date posted: 01/04/2022

CA ANZ welcomes first look at international sustainability standards

Today’s consultation launch of proposed reporting standards on climate and sustainability, by the International Sustainability Standards Board (ISSB), is a vital step towards harmonising the complex and fragmented sustainability reporting landscape, says Chartered Accountants Australia and New Zealand (CA ANZ).

The two exposure drafts released on general sustainability-related disclosure requirements, and on climate-related disclosure requirements, aim to create a comprehensive global baseline of sustainability to assist capital markets.

“Climate and sustainability disclosures have become key requirements for most businesses, but the lack of a globally accepted reporting framework has caused confusion and even opportunities for greenwashing,” said CA ANZ Business Reform Leader Karen McWilliams.

“The formation of the ISSB at COP26 delivered an organisation to lead this work on sustainability standards. These proposals are the vital next step towards harmonising this complex and fragmented sustainability reporting landscape and creating the comprehensive global baseline that investors need to make the best possible decisions,” continued Ms McWilliams.

The ISSB is seeking feedback on the two proposed standards, a climate standard and a general requirements standard, over a 120-day consultation period ending 29 July 2022. It will review feedback received on the proposed standards in the second half of 2022 and aims to finalise the requirements by the end of the year, subject to the feedback received.

“Success in this area relies on collaboration, so it’s pleasing that these proposals build on the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB) at the request of G20 leaders, and the International Organization of Securities Commission.”

“Harmonisation and simplification, for the benefit of investor decision making, and ultimately our planet, are the goals here. Chartered Accountants ANZ looks forward to engaging with members to help direct this important work.”

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