The International Sustainability Standards Board is launching a new working group of representatives from various jurisdictions around the world, to coordinate between the ISSB’s climate disclosure proposals and those under development in different countries.
The working group members include the US Securities and Exchange Commission, the Chinese Ministry of Finance, the European Commission, the European Financial Reporting Advisory Group, the Japanese Financial Services Authority, the Sustainability Standards Board of Japan Preparation Committee and the UK Financial Conduct Authority.
The first meeting will take place in May, with a second meeting scheduled for July.
“There is strong public interest in seeking to align where possible the international and jurisdictional requirements for sustainability disclosures,” said ISSB Chair Emmanuel Faber.
He added, “We have a window of opportunity to do just that, given that the ISSB’s proposals are out for comment at the same time as several major jurisdictions are also seeking public input on their proposals. I look forward to a fruitful exchange of ideas.”
Next quarter the ISSB will create a new advisory body known as the Sustainability Standards Advisory Forum to facilitate regular dialogue with, and high-level advice from, a broad set of jurisdictions, it said.
ISSB, which was launched last November, released its first two draft reporting standards for public comment.
The first sets out the broad requirements for disclosing sustainability financial information to primary users of financial statements while the second looks at identifying, measuring and disclosing climate-related risks and opportunities.
Sustainability standard setting in local jurisdictions is a relatively new development that has emerged in parallel with ISSB’s debut.
While the ISSB’s standards focus on providing investors with information that is relevant or material to enterprise value, local sustainability standards, cast their net over a wider group of stakeholders and are solely domestic or jurisdictional.
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