ISSB seeks feedback on global sustainability disclosure plan

April 1, 2022

The International Sustainability Standards Board (ISSB) has launched a consultation on its first two proposed standards that will eventually form a “global baseline” of sustainability disclosures.

Both proposals are based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and incorporate industry-based disclosure requirements derived from SASB Standards.

The ISSB, which was established at the global climate summit COP26 last year to develop sustainability disclosures for capital markets, is seeking feedback on the proposals over a 120-day consultation period that closes on 29 July 2022.

The board will review stakeholder feedback on the proposals in the second half of 2022, with the aim to issue the new standards by the end of the year.

One of the draft proposals sets out general sustainability-related disclosure requirements, while the other specifies climate-related disclosure requirements. The proposals build on the work of the Climate Disclosure Standards Board, the International Accounting Standards Board, the Value Reporting Foundation - which houses Integrated Reporting and SASB Standards – the TCFD and the World Economic Forum.

The new disclosures are being developed in response to requests from G20 leaders, the International Organization of Securities Commissions (IOSCO) and other organisations for more information from companies on sustainability-related risks and opportunities.

Emmanuel Faber, chair of the ISSB, said: “Rarely do governments, policymakers and the private sector align behind a common cause. However, all agree on the importance of high-quality, globally comparable sustainability information for the capital markets.

“These proposals define what information to disclose, and where and how to disclose it. Now is the time to get involved and comment on the proposals.”

The ISSB is due to consult on its priorities for standard-setting later this year.

Mary Shapiro, head of the TCFD Secretariat, added that the ISSB’s climate proposals built on the TCFD’s framework to “create further consistency, comparability and reliability across climate disclosure”, to help investors make “more informed” financial decisions.