ISSB October 2023 Update
Monthly updates from International Sustainability Standards Board
Introduction
In this blog post, we'll provide a summary of the recent podcast discussion between ISSB Vice-Chair Sue Lloyd and ISSB Chair Emmanuel Faber. They discussed various updates and progress made by the ISSB since their last podcast.
Progress Towards Jurisdictional Adoption
The ISSB has made significant strides in promoting the adoption of its sustainability reporting standards. Two noteworthy examples of progress were highlighted:
1. Asian Capital Markets Forum (ACMF) Protocol: The ISSB signed a protocol with the ACMF, which represents securities regulators and capital markets authorities in the Asian region. This protocol establishes a platform for interaction and collaboration to discuss the adoption of ISSB standards in the region and gather input for future developments. The ISSB aims to support the implementation of sustainability reporting standards (S1 and S2) in this growing part of the world.
2. Brazil's Adoption of ISSB Standards: Brazilian regulators announced their commitment to incorporating ISSB standards into the Brazilian regulatory framework. This move involves transitioning from voluntary use to mandatory use of these standards by January 2086. Brazil views ISSB standards as a means to enhance transparency around sustainability matters, making it easier for companies to attract capital both locally and globally.
Partnerships and Ecosystem Engagement
The ISSB is actively engaged with various partners and initiatives to further advance sustainability reporting:
1. Transition Plan Task Force (TPT): The TPT framework was introduced in the UK to help companies develop plans for transitioning to more climate-resilient and lower-carbon business models. The TPT framework complements ISSB standards and provides additional guidance for companies on transition plans.
2. European Sustainability Reporting Standards: The European Union confirmed the final adoption of European sustainability reporting standards, marking a significant milestone in introducing mandatory sustainability disclosure requirements. The ISSB collaborates with the European Commission and EPFRAG to ensure alignment and interoperability of standards.
3. Task Force on Climate-Related Financial Disclosures (TCFD): The ISSB will take over the responsibility for monitoring progress in the adoption of disclosures consistent with the TCFD framework. The TCFD has published its 2023 status report, highlighting the connection between its work and the ISSB's efforts.
Capacity Building and Translation
Capacity building and translation are essential aspects of the ISSB's work:
1. Educational Materials: The ISSB is developing educational materials to aid stakeholders, market participants, and regulators in understanding and applying ISSB standards. These materials will help stakeholders effectively implement S1 and S2.
2. Translation Efforts: The ISSB is actively translating its standards into multiple languages to ensure global accessibility. The goal is to have ISSB standards available in ten different languages by January 2024.
Stakeholder Engagement
The ISSB continues to engage with a diverse range of stakeholders:
1. World Standard Setters Meeting: The ISSB held discussions with national standard setters to understand their perspectives on sustainability reporting and explore opportunities for collaboration.
2. Investor Event in Tokyo: The ISSB met with members of the Investor Advisory Group and the IISB Sustainability Alliance during PRI's in-person event in Tokyo.
3. Engagement in Latin America: During a trustees meeting in Panama, the ISSB announced its support for sustainability standards and transparency in the region, emphasizing the importance of regulatory backing.
4. Collaboration with GRI and GSSB: The ISSB discussed its collaboration with the Global Reporting Initiative (GRI) and the Global Sustainability Standards Board (GSSB) to align their work and reduce reporting burdens for companies.
Agenda Consultation and Future Directions
The ISSB conducted an agenda consultation, receiving over 400 responses from more than 3,000 stakeholders. Key themes that emerged from this consultation include:
- Stakeholder desire for a clear roadmap outlining the ISSB's strategy.
- Calls for interoperability to reduce duplication and enhance consistency in reporting.
- Balancing different views on timelines for new sustainability projects.
- General support for research in various areas outlined in the agenda consultation.
The ISSB plans to carefully analyze these responses and gradually formulate its strategy in early 2024.
For more details, please visit the link to October 2023 ISSB update.