Time for a global solution?
This week IFRS Foundation Trustee Teresa Ko underlined why she thinks that the IFRS’ history of good governance and transparency makes it an ideal base for a new Sustainability Standards Board.
The growing and urgent demand to improve the consistency and comparability of sustainability reporting data has prompted the IFRS to consult on steps forward.
As Ko highlights, the ESG reporting landscape is increasingly chaotic, inefficient and ineffective. Firms wind up adding complexity and cost without quality when reporting via multiple standards and metrics, while investors are calling for much clearer, more useful ESG data.
The proposed Sustainability Standards Board would utilise the existing IFRS governance structure to bring clarity to this picture.
Having had a transformative effect on the global financial reporting landscape, Ko believes that it is high time that the IFRS’ good governance structures, rigorous standards development process and emphasis on transparency are turned to sustainability reporting.
However, this will be a demand-driven process – so if you agree (or don’t agree) with Ko, respond to the current consultation with comments and concerns before the 31 December deadline.
Read more and find out how to respond to the consultation here.
