IFRS / ISSB: New Climate and Sustainability Disclosure Rules Expected by June

And effective January 2024.

The International Sustainability Standards Board (ISSB) was officially launched in 2021 in Glasgow at COP26. Its goal is to - urgently - develop IFRS Sustainability Disclosure Standards.

ISSB chair Emmanuel Faber said recently that the first two reporting standards, covering General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and Climate-related Disclosures (IFRS S2) would be “substantially” completed by the end of February now and that their final versions — first global effort to address environmental, social and corporate governance standards — should be published in June 2023. Drafts for public comment were issued in March 2022.

Erkki Liikanen, chair of the ISSB’s parent body the IFRS Foundation Trustees, speaking on a panel on “Stewarding Responsible Capitalism” at the World Economic Forum in Davos also revealed this goal and commented on the speed with which the standards have been developed. Key endorsement by IOSCO and assurance by auditors were also mentioned. He also indicated that “because of the global character of the issue” ISSB will be expanding, with a new office in Beijing, in addition to Frankfurt, Montreal, San Francisco, Tokyo and London ( video particularly interesting from 04’50’’ to 06’30” ).

And he concludes by quoting IOSCO’s chair “The aim should be that in 2024, financial reporting and sustainability reporting will go together. And that is a good point to keep in mind. If you are a business leader, be ready to report on both in 2024.” (41’50’’)

By the way, IOSCO is also active in the carbon credit markets. Recall here two discussion papers put out for comments on November 2022, “Voluntary Carbon Markets” and “Compliance Carbon Markets” .

Click below to access the key documents about the new disclosure standards IFRS S1 and IFRS S2 that will be re-deliberated coming February 16 at ISSB Meeting in Montreal, Canada. One of the agenda items indicate “IFRS S1 and IFRS S2 are effective for annual reporting periods beginning on or after 1 January 2024”.