Since the establishment of the ISSB was announced at COP26 in Glasgow, significant progress—both technical and institutional—has been made towards delivering the global baseline for capital markets.
- The ISSB is now fully operational with a diverse 14-member board supported by a strong technical staff team
- The IFRS Foundation has implemented a multi-location model for offices in Frankfurt, Montreal, London, San Francisco, Beijing and Tokyo
- The Climate Disclosure Standards Board and Value Reporting Foundation (Integrated Reporting Framework and SASB Standards) have been consolidated into the IFRS Foundation
- The ISSB is collaborating with global and regional partners and has established a number of advisory bodies to enable deep engagement with experts around the world.
- The G7 has welcomed the inauguration of the ISSB and its progress on delivering the global baseline of sustainability disclosure standards. The G20, Financial Stability Board and African Finance ministers have also offered support.
The ISSB has set out clear priorities in its roadmap to deliver the global baseline
1) Steps to deliver, strengthen and enhance adoption and application of S1 and S2:.
- Balloting process: the ISSB has taken its final decisions on all the technical content of S1 and S2, informed by feedback it received during extensive consultation last year. With the substance of the Standards now fully agreed, the ISSB unanimously approved entering the thorough drafting and formal balloting process of the Standards, ahead of their expected issuance at the end of Q2 2023.
- Digital taxonomy: the ISSB will consult on a proposed digital taxonomy to enable digital reporting of sustainability disclosure from day one
- Capacity building: the ISSB is working with partners globally to facilitate the adoption of the standards by markets and their application by companies.
- Regulatory adoption: working with IOSCO and jurisdictions around the world so that ISSB Standards can provide the foundations for globally applicable disclosure requirements that establish a consistent and comprehensive global baseline
- Voluntary adoption: actively engaging with the many preparers who are considering voluntary adoption of S1 and S2 to better answer investor needs
2) Work to:
- Enhance the international applicability of the SASB Standards, which companies applying S1 must consider
- Connect climate and nature by researching incremental enhancements to disclosures required by S2
3) Focus on:
- Connectivity with financial statements, to ensure standards are compatible and consistent
- Interoperability with GRI to align capital market and multi-stakeholder standards to create an interconnected approach for sustainability disclosures
4) Consult on new priorities, including biodiversity, human capital, human rights, and connectivity with financial statements.
