ISSB standards move to final drafting stage
Last week The International Sustainability Standards Board (ISSB) voted on the technical substance of its sustainability standards. With the content of the standards fully agreed, the ISSB can now move onto the final stage in preparation: drafting. A January 2024 implementation date for Sustainability Disclosure Standards S1 and S2 was also agreed during the meeting.
The final decision included a surprise inclusion focused on maximising the interoperability of various sustainability standards: the ISSB voted to reference European Sustainability Reporting Standards (ESRS) within an appendix to S1—the ISSB’s general requirements standard—as a source of guidance for companies to turn to in absence of a relevant ISSB standard. This move explicitly addresses the need for alignment between the two key climate disclosure frameworks – although, what it means in terms of practical application of ISSB standards, especially in jurisdictions with mandatory disclosure, is not yet clear.
In the meantime, as the standards are finalised, the ISSB will switch the focus to capacity building – this will include producing training and guidance materials, and working with developing and emerging economies in structured partnerships to build local understanding and implementation of the standards and help scale up use.
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