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The IFRS Foundation Monitoring Board (Monitoring Board) welcomes the developments over the past two years in the area of sustainability-related disclosure by the IFRS Foundation and the International Sustainability Standards Board (ISSB). The issuance of the inaugural standards on climate-related disclosures (IFRS S2) and general requirements for disclosure of sustainability-related financial information (IFRS S1) by the ISSB (“ISSB Standards”), 1 and the subsequent endorsement by the International Organization of Securities Commissions (IOSCO), 2 mark an important milestone, achieved within a short timeframe to develop a global framework in the area of sustainability reporting focused on investor needs.
Building on this achievement, the next step will be to advance the jurisdictional consideration to adopt, apply or otherwise be informed by the two ISSB Standards, to promote consistent and comparable climate-related and other sustainability-related disclosure for investors. In this context, the Monitoring Board acknowledges the ongoing efforts of the ISSB to develop an adoption guide to support jurisdictions in their implementation considerations of its standards, as well as to provide educational materials to help the corporate sector in applying the standards.
The Monitoring Board has exercised its oversight responsibilities throughout the process of the abovementioned initiatives with the leadership of the ISSB and the IFRS Foundation Trustees, and remains focused on overseeing the further work of the ISSB to ensure that their standards continue to be developed using robust governance, due process, and oversight, as are the IFRS Accounting Standards developed by the International Accounting Standards Board.
Takashi Nagaoka, Chairman of the Monitoring Board, said:
“The accomplishments over the past two years have provided a global framework on which we may promote consistent and comparable climate-related and other sustainability-related disclosure for investors. The Monitoring Board calls for further endeavors to broaden the consideration of the standards.
The Monitoring Board also looks forward to the ISSB’s future work to meet market demand for information on sustainability-related risks and opportunities in a rapidly changing business environment, with due consideration to the feedback received from global stakeholders.
The Monitoring Board will continue to work closely with the IFRS Foundation Trustees from the public authorities’ point of view to help oversee their strategic activities with the two standard setting boards under the Foundation.”
