Asset owner feedback sought as ISSB builds approach

February 11, 2022

The new standards body is fleshing out its approach with input from the Financial Reporting Council.

Investors have been invited to give feedback on prototype disclosure templates set out by the International Sustainability Standards Board (ISSB).

Janine Guillot, special advisor to the chair of the ISSB, invited external input in an interview with Top1000funds.com. She said it was “vitally important” that asset owners had a say in what the body's final disclosures look like.

The prototypes are slated to become the first two disclosure standards issued by ISSB.

Guillot’s call comes as the UK's Financial Reporting Council (FRC) shared its own preliminary thoughts on the prototypes.

In a letter to the ISSB, the FRC highlighted six points for consideration, including developing the architecture of the standards and the implementation of a hierarchy.

It also highlighted for consideration the four 'pillars' set out by the Taskforce on Climate-Related Financial Disclosures: governance, strategy, risk management, and metrics and targets. These are being used to develop the ISSB standards, but the FRC warned that they may not be sufficient by themselves as elements of the reporting framework.

Finally, the FRC stated the need for quality communication regarding governance reporting, highlighting possible overlaps or conflicts between the ISSB’s emerging standards and other national corporate governance codes already in force.

According to Top1000funds.com, Guillot, in vocalising her support for globally accepted sustainability disclosure standards, said: “If that happens asset owners can source the data they need for their own disclosure requirements and integrate climate risks into their assessments.”

The FRC’s full response to the prototypes can be read here.

This story comes after the recent announcement by the IFRS for a further search for ISSB members.