New proposals on the first IFRS® Sustainability Disclosure Standards mark the next step toward equal prominence for international sustainability and financial reporting. The proposals aim to create a global baseline for investor-focused sustainability reporting that local jurisdictions can build on.
The proposals are open for comment until 29 July 2022; the subsequent standards may be issued as soon as the second half of 2022.
The first two proposals of the IFRS Sustainability Disclosure Standards are now available – covering general requirements and climate-related disclosures. They are based on existing frameworks and standards, including TCFD and SASB.
"The upcoming IFRS Sustainability Disclosure Standards provide a compass for companies and investors, pointing to consistency and comparability in sustainability disclosures. Credible ESG reporting is rooted in a comprehensive story that connects financial performance with rigorously tracked metrics and transparent progress on your environmental, social and governance activities. Every company – public or private, US or global – will be able to use the ISSB as a starting point for its journey. For more mature reporters, these standards will help bring order to the chaos. In the end, access to capital will depend on how you articulate your ESG performance. Prepare. Now."
— Maura Hodge, KPMG IMPACT Audit Leader
What’s the impact?
As a US company, why should you pay attention?