From inception of its operations, the ISSB has been applying:
The Due Process Oversight Committee monitors the ISSB’s compliance with this due process.
Some due process requirements for the ISSB are specified in the IFRS Foundation Constitution (see sections 53–59 of the Constitution. The Trustees specified these requirements in October 2021 when they amended the Constitution to reflect the establishment of the ISSB.
The IFRS Foundation Due Process Handbook describes the due process requirements of the IASB and the IFRS Interpretations Committee relating to their standard-setting activities, the development of materials to support the consistent application of IFRS Accounting Standards, and the IFRS Accounting Taxonomy. The requirements reflect and further the due process specified in the Constitution for the IASB and the Interpretations Committee.
The Trustees’ committee responsible for overseeing the due process of the IASB, the ISSB and the Interpretations Committee—the Due Process Oversight Committee (DPOC)—last updated the Handbook in August 2020 before the establishment of the ISSB. Accordingly the Handbook makes no reference to the ISSB.
The DPOC will update the Handbook to reflect formally the establishment of the ISSB.
Before such time, the DPOC decided in March 2022 that the ISSB will apply the due process specified in the Handbook for the IASB for corresponding technical activities, in addition to the due process specified for the ISSB in the Constitution.
In March 2022, the DPOC noted that adaptations and additions to the IASB’s due process might be required for specific aspects of the ISSB’s work. Any such adaptions and additions will be made by the DPOC and reported to stakeholders in the reports of its meeting on the IFRS Foundation website.
As a convenience for stakeholders, those adaptations and additions are summarised in the Appendix below.
The existing due process allows the IASB and the ISSB to establish connectivity in their respective Standards and, if considered appropriate, would allow the IASB and the ISSB to consider technical matters together or undertake a joint project and jointly issue a due process document. For example, if the boards decided to issue an exposure draft jointly, each board would apply its balloting procedure separately in approving the exposure draft. Accordingly, a super majority of the IASB and a super majority of the ISSB would be required to issue the exposure draft.
The DPOC is updating the Handbook to reflect formally the establishment of the ISSB.
Before the updated handbook is finalised, the DPOC decided in March 2022 that the ISSB will apply the due process specified in the Handbook for the IASB for corresponding technical activities, in addition to the due process specified for the ISSB in the Constitution.
In October 2022 the DPOC discussed and approved the following process for the ISSB to maintain, evolve and enhance the SASB standards that do not form part of IFRS Sustainability Disclosure Standards. These standards have an important role because they are referenced as supporting materials in IFRS S1 General Requirements.
The DPOC also discussed two specific related matters relating to maintaining and enhancing the SASB standards:
In March 2023 the DPOC considered and approved the following due process for updating the SASB Standards Taxonomy to enhance its international applicability.