ISSB and IASB navigate the path to connectivity
In a recent podcast, Sue Lloyd, Vice Chair of the International Sustainability Standards Board (ISSB), and Linda Maisenbacher, Vice Chair of the International Accounting Standards Board (IASB), give their insights into the outcomes of a Joint Board meeting held in London. The meeting centered around key feedback received on the ISSB’s agenda consultation, with a specific focus on a potential project on integration in reporting and on connectivity between the two boards.
The meeting explored feedback received by the boards related to a potential project on integration and reporting. Surprisingly, the topic of connectivity emerged organically in the comments, although stakeholders weren’t explicitly asked about this topic – suggesting that connectivity is high on the agenda of stakeholders in the reporting sphere.
Respondents encouraged collaboration between the ISSB and IASB, seeing the potential for enhanced reporting and increased efficiency by aligning sustainability disclosures within the management commentary.
The crux of the discussion revolved around the feedback received on a potential project on integration reporting across the IASB and ISSB’s standards. Lloyd and Maisenbacher provide insights into the diverse interpretations stakeholders had regarding the project. Some envisioned a single report framework, while others leaned towards a conceptual framework underpinning both boards’ work. Regardless, stakeholders stress the importance of coherent, consistent, and connected disclosures – in addition to a need for a phased approach to give plenty of time to adapt to new reporting regimes.
Connectivity cannot be a standalone project, rather it must be an inherent aspect of how both boards operate, ensuring consistency in their language and approaches. This is key to building clarity, improving reporting efficiency, and paving the way for further integration as the ISSB’s standards are increasingly adopted.
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