IFRS Foundation and EFRAG release interoperability guidance for ISSB & ESRS
The IFRS Foundation and EFRAG have just released joint guidance on the alignment achieved between ISSB’s IFRS Sustainability Disclosure Standards and ESRS, providing valuable support for companies navigating sustainability reporting. This release offers practical support for companies, focusing particularly on navigating climate-related disclosures.
The joint effort during the development of ESRS and ISSB Standards has resulted in a high degree of convergence, with common definitions, aligned materiality concepts, and substantial similarities in climate-related disclosures. The guidance aims to facilitate efficient compliance with both sets of standards, ensuring interoperability and reducing complexity for reporting entities.
It provides comprehensive guidance on how entities can efficiently comply with both sets of standards, facilitating interoperability between ISSB Standards and ESRS. By reducing complexity and duplication, the guidance streamlines reporting processes for companies adhering to both ISSB Standards and ESRS, advancing transparency and comparability in sustainability reporting.
Patrick de Cambourg, Chair of EFRAG Sustainability Reporting Board, underscored the practicality of the guidance in demonstrating alignment between ESRS and ISSB Standards, thereby supporting international convergence in sustainability reporting.
With ESG reporting taking root in countries around the world, regulators are beginning to turn their attention to ensuring interoperability between the various standards and associated digital taxonomies that are recently or nearing publication. We are pleased to see this increased focus on streamlining the reporting an analysis process, and expect to see more action on interoperability throughout 2024.
Read the guidance here.
