ISSB Proposes Sustainability Disclosure Standards

By Nancy Fass
May 1, 2022

The International Sustainability Standards Board (ISSB) has launched a consultation on its first two proposed standards, General Requirements for Disclosure of Sustainability-related Financial Information and Climate-related Disclosures.


The ISSB is seeking feedback on the proposals by July 29, 2022. It will review feedback and aims to issue the new standards by the end of 2022.


The proposals, or exposure drafts, build upon the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and incorporate industry-based disclosure requirements derived from Sustainability Accounting Standards Board (SASB) Standards.


When the final requirements are issued by the ISSB, they’ll form a comprehensive global baseline of sustainability disclosures designed to meet the information needs of investors in assessing enterprise value. The ISSB is working closely with other international organizations and jurisdictions to support the inclusion of the global baseline into jurisdictional requirements.


The proposals have been developed in response to requests from G20 leaders, the International Organization of Securities Commissions (IOSCO), and others for enhanced information from companies on sustainability-related risks and opportunities. The proposals set out requirements for the disclosure of material information about a company’s significant sustainability-related risks and opportunities that’s necessary for investors to assess a company’s enterprise value.


“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,” said Emmanuel Faber, chair of the ISSB. “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.”


Click to view the exposure drafts.


Nancy Fass is a senior editor for IMA® (Institute of Management Accountants). She can be reached at nfass@imanet.org.
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