I’m writing to thank our members for having their say on the recent climate and sustainability consultations, and to share our submissions.
You may recall that on 26 April 2022, I wrote to inform you that the International Sustainability Standards Board (ISSB) commenced consultation on two draft new standards setting out ‘sustainability-related’ and ‘climate-related’ disclosure requirements.
Since then, we sought feedback from members to contribute to a variety of conversations and submissions on these draft standards, recognising the importance of the development of a consistent and comprehensive global baseline, but also our role in representing the accounting profession in the region.
We provided a submission jointly with CPA Australia on the draft standards, and also supported the coordination of and contributed to the following:
- The Peak Australian Bodies submission, which collectively represents the voice of 20 peak professional, industry and investor bodies in Australia; and
- The Global Accounting Alliance submission, which represents the voices of 10 leading professional accounting bodies around the world.
In addition to the above, we also responded to the Australian Accounting Standards Board’s (AASB) call for feedback on the draft standards in the Australian context – both jointly with CPA Australia and as part of the Peak Australian Bodies submission.
We fully support a global approach to the development of sustainability disclosure standards and are supportive of the ISSB as the global body to issue these standards.
The overarching goal should be a globally consistent, comparable, reliable corporate reporting system, from which assurance can be obtained on reported information, to provide all stakeholders with a clear and accurate picture of an organisation’s ability to create sustainable value over time.
Overall, in our view the Exposure Draft of IFRS S1 does not achieve the clarity, appropriate scope nor objectives required to foster and improve sustainability reporting toward the agreed purpose of a globally consistent, comparable, reliable corporate reporting system.
Our submissions detail the issues that we consider need addressing in order to create a conceptual basis for sustainability reporting that is appropriate for adoption.
In addition to the above, we make particular comments about:
- The comprehensive global baseline and collaboration;
- Clear terminology, criteria and guidance;
- Scalable and practical implementation of best practice;
- Industry specific metrics;
- Effective date; and,
Thank you again for your thoughts and comments on both the ISSB’s draft standards and the AASB’s consultation process. As always, your feedback has enabled us to contribute meaningfully to this global conversation.
The ISSB aims to issue the new standards by the end of the year. We will keep you informed of developments relating to this process.
If you have any questions, please contact [email protected]
Ainslie van Onselen
Chief Executive Officer, CA ANZ