As regulators around the world prepare to adopt new ISSB sustainability disclosure standards, the foundation behind them has released a preview of an adoption guide expected this summer.
On June 26, the International Financial Reporting Standards Foundation's International Sustainability Standards Board unveiled two global sustainability disclosure standards, including one specific to climate that let investors see how companies manage risks and opportunities, with information tied to corporate financial statements. For the first time, those standards "create a common language for disclosing the effect of climate-related risks and opportunities on a company's prospects," IFRS officials said at the time.
ISSB standards will be adopted through two main routes: regulatory jurisdictions that have already started adopting or adapting them, and companies that are voluntarily applying them in response to investor demand for comparable and decision-useful sustainability-related information.
The International Organization of Securities Commissions — whose members regulate more than 95% of world securities markets — endorsed the new standards and called on its 130 member jurisdictions to consider incorporating the ISSB standards into their respective regulatory frameworks.
In addition to the preview of the guide to jurisdictional adoption, the IFRS Foundation also publishes a list of ongoing and completed jurisdictional consultations to keep stakeholders informed.
