ISSB January 2024 Update
ISSB Priorities and Progress: A 2024 Outlook
The International Sustainability Standards Board (ISSB) has been actively working towards establishing and implementing global sustainability-related disclosure standards. In a recent discussion, ISSB Chair Emmanuel Faber and Vice-Chair Sue Lloyd shared insights into the board's latest developments, priorities for the year 2024, and the progress made in technical work.
Top Priorities for 2024
The ISSB has outlined three main priorities for the year:
Supporting the Implementation of S1 and S2: These standards are crucial for sustainability disclosures, and the ISSB is focused on aiding their implementation.
Working with Jurisdictions on Adoption Roadmaps: The ISSB is collaborating with various jurisdictions to facilitate the adoption of these standards.
Agreeing on the Next Two-Year Work Plan: This plan will guide the ISSB's activities and focus areas for the coming years.
Key Activities for Achieving Priorities
To achieve these priorities, the ISSB is undertaking several key activities:
Capacity Building Programs: These programs are designed to enhance the capabilities of those involved in implementing the standards.
Knowledge Hub Development: The ISSB is wrapping up the development of a hub that will serve as a central resource for information related to the standards.
Finalizing Digital Taxonomy: This involves completing the framework that will enable digital reporting in line with the standards.
Supporting Interoperability Initiatives: The ISSB is working to ensure that its standards can work seamlessly with other reporting frameworks.
Enabling Connection with Financial Statements: This activity aims to link sustainability disclosures with traditional financial reporting.
Providing Feedback through Transition Implementation Group: The ISSB is gathering and incorporating feedback to improve the transition process.
Developing Educational Materials: These materials will help stakeholders understand and apply the standards effectively.
Educational Material on Reporting Use
A new educational material, a mapping tool developed in collaboration with the Global Reporting Initiative (GRI), has been introduced. This tool helps companies understand the common disclosure requirements between GRI standards and ISSB standards, particularly for emissions reporting, demonstrating the alignment between the two sets of standards.
Advancing Adoption and Use of Standards
Countries like Turkey and Costa Rica have announced their intent to adopt ISSB standards, with Costa Rica planning for voluntary adoption in 2024 and mandatory application from 2025. The ISSB is committed to providing guidance and support to these jurisdictions.
Delivering Globally Consistent Disclosures
The ISSB's establishment aims to deliver globally consistent sustainability-related disclosures for capital markets. They are working closely with jurisdictions to ensure consistency while also considering local contexts.
Supporting Jurisdictions in Their Journey
The ISSB assists jurisdictions in designing and planning their adoption roadmaps, policy decisions, licensing, translation, and capacity building programs, which are developed with multilateral development banks.
Engagement with Stakeholders
The ISSB engages with stakeholders through various events and discussions, such as the Davos moment, emphasizing the importance of addressing climate change and sustainability issues. They also promote the use of the integrated reporting framework, which is already widely adopted by companies worldwide.
Looking Ahead
The ISSB is in the process of finalizing decisions on its strategy, research projects, and potential standards development by mid-2024. They continue to gather evidence on financial reporting problems or disclosure gaps before embarking on formal standard-setting projects. In conclusion, the ISSB is making significant strides in promoting sustainability reporting standards globally. With a clear set of priorities and a robust plan for supporting jurisdictions and stakeholders, the ISSB is poised to make a substantial impact on how companies report on sustainability issues, thereby contributing to a more sustainable future for all.