The IFRS Foundation moves ahead with developing an international sustainability reporting standards board

The IFRS Foundation consulted on the need to establish a global sustainability reporting standards board under its auspices in late 2020.

Respondents expressed an urgent need for global sustainability reporting standards and support for the Foundation’s role in this process. As a result, the Foundation will continue with its work to establish this board and debate the next steps.

The Trustees have made several preliminary decisions on the strategic direction of the new board:

• Investor focus for enterprise value: the new board would focus on information that is material to the decisions of investors, lenders and other creditors.
• Sustainability scope, prioritising climate: due to the urgent need for better information about climate-related matters, the new board would initially focus its efforts on climate-related reporting, while also working towards meeting the information needs of investors on other ESG (environmental, social and governance) matters.
• Build on existing frameworks: the new board would build upon the well-established work of standard-setters and others involved in sustainability reporting. The board will put in place a structured engagement with relevant organisations.
• Building blocks approach: by working with standard-setters and others from jurisdictions, standards issued by the new board would provide a globally consistent and comparable sustainability reporting baseline, while also providing flexibility for coordination on reporting requirements that capture wider sustainability impacts.

Read more on the IASB website here.

Disclaimer

This content has been prepared by the Secretariat of the ASB for information purposes only. It has not been reviewed, approved or otherwise acted on by the Board.