New global sustainability disclosure standards won’t bring quick local relief
September 5, 2022
A lot of hope rests on the International Sustainability Standards Board’s (ISSB) coming framework for sustainability- and climate-related disclosures.
Given the reputation and reach of the ISSB’s backers, many see the new board as being in the best position to drive the Great Unification of sustainability and climate disclosures — the great variation of which has left many feeling like they’re flailing about in a sea of inconsistent and incomplete data.
But, much as the ISSB’s new guidelines will be welcome, they are also unlikely to bring quick relief to the markets. The journey from draft standards to on-the-ground implementation can be a less-than-straightforward path — one which Singapore companies will have to learn to navigate.
The journey thus far
The ISSB’s influence and its potential for driving meaningful change stems from its creation by the IFRS Foundation Trustees, who are responsible for the governance and oversight of the International Financial Reporting Standards (IFRS) Foundation and the International Accounting Standards Board (IASB). These entities issue the world’s most widely adopted reporting and accounting standards.
Since its launch in November, the ISSB has wasted little time getting to work. It has already wrapped up public consultation on two exposure drafts: one on sustainability-related disclosures, and the other on climate-related disclosures. Details are available on the IFRS’s website (www.ifrs.org).
The board is currently assessing and discussing the feedback it received, and new standards from these consultations are expected by the end of the year.
[The Business Times]