The IFRS Foundation has launched the International Sustainability Standards Board (‘ISSB’) to mark Finance day at the COP26 conference in Glasgow.
Leveraging off the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), the The Sustainability Accounting Standards Board (SASB), and the the Climate Disclosure Standards Board (CDSB), the ISSB is expected to utilise the best metrics from these frameworks and will provide a common global reporting framework, similar to the existing IFRS.
The announcement is a significant milestone in addressing the complexity and confusion of sustainability reporting requirements and will support businesses in measuring and reporting on material sustainability information that is relevant for investors and other stakeholders. While taking a “climate first” approach the ISSB framework will enhance the basis on which sustainability matters are reported to the market, how climate and broader sustainability issues impact enterprise value; and how companies view and manage their strategic risks.
This is a game changer for corporate reporting – implementing the new ISSB standards has the potential to change the way that Boards and investors make financial investment decisions in the coming years.
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The pace of change is challenging leaders like never before. To find out more about how KPMG perspectives and fresh thinking can help you focus on what’s next for your business or organisation, please get in touch with Colm O'Sé or Conor Holland of our Sustainable Futures team. We’d be delighted to hear from you.