The International Sustainability Standards Board (ISSB) has announced significant strides in harmonizing sustainability disclosure through strategic partnerships and a new two-year work plan. Key collaborations include the Transition Plan Taskforce, GHG Protocol, CDP, Taskforce on Nature-related Financial Disclosures, and Global Reporting Initiative. These efforts aim to streamline sustainability reporting, ensuring investors receive high-quality, comparable information. The ISSB’s initiatives, discussed at the IFRS Foundation Conference during London Climate Action Week, reflect a commitment to reducing reporting complexity and enhancing global standards.
Developments in Strategic Collaborations between ISSB and Key Global Initiatives
The International Sustainability Standards Board (ISSB) is advancing strategic relationships with several key organizations, including the Transition Plan Taskforce, GHG Protocol, CDP, Taskforce on Nature-related Financial Disclosures, and Global Reporting Initiative, as it begins its new two-year work plan. At the IFRS Foundation Conference, held during London Climate Action Week, ISSB Chair Emmanuel Faber will announce further steps towards harmonizing the sustainability reporting landscape. The ISSB also released a Feedback Statement outlining this work plan.
Key Motivations Behind the ISSB’s Establishment
The ISSB was established by the IFRS Foundation to address the growing proliferation of voluntary initiatives in sustainability disclosure. The aim is to provide investors with high-quality, comparable information on sustainability-related risks and opportunities, while enabling companies to efficiently share this information.
Since its inception, the ISSB has sought to streamline and unify diverse sustainability reporting initiatives, leveraging expertise from leading frameworks and standards. This effort included consolidating the Climate Disclosure Standards Board (CDSB), the Sustainability Accounting Standards Board (SASB), and the International Integrated Reporting Council (IIRC). Additionally, the Task Force on Climate-related Financial Disclosures (TCFD) concluded its activities following the launch of the ISSB’s inaugural standards—IFRS S1 on sustainability-related financial information and IFRS S2 on climate-related disclosures.
Collaboration and Adoption
The ISSB collaborates closely with international securities regulators through the International Organization of Securities Commissions (IOSCO) and engages directly with jurisdictions through its Jurisdictional Working Group to support the adoption of ISSB standards. More than 20 jurisdictions, representing nearly 55% of global GDP and over 40% of global market capitalization, have already adopted or are in the process of integrating ISSB standards into their legal frameworks.
Focus on Harmonizing Transition Plan Disclosures
The ISSB’s two-year work plan includes further efforts to harmonize and consolidate the disclosure landscape in response to market demand. An emerging focus area is disclosures related to entities’ transition plans—strategies for achieving lower-carbon economies. IFRS S2 requires disclosures of such plans, if they exist. To enhance consistency and reduce fragmentation, the ISSB plans to collaborate on streamlining and consolidating related frameworks and standards.
As part of this initiative, the IFRS Foundation will take responsibility for the disclosure-specific materials developed by the Transition Plan Taskforce, which build on components identified by the Glasgow Financial Alliance for Net Zero (GFANZ). These materials will be hosted on the IFRS Sustainability Knowledge Hub and will be tailored for global applicability while maintaining alignment with IFRS S2’s focus on disclosing climate-related risks and opportunities relevant to investors and financial markets.
Supporting High-Quality Disclosures
Over time, the ISSB will assess the need to refine the application guidance in IFRS S2, using relevant materials to enhance the quality of disclosures. Any revisions will be made in accordance with the IFRS Foundation’s due process and mission to deliver high-quality, decision-useful information to meet the needs of investors.
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