There are currently three sets of standards or regulation that could set the foundation for future ESG reporting from the International Sustainability Standards Board (ISSB), the SEC and the European Financial Reporting Advisory Group (EFRAG) in the European Union. All of the proposals have multi-jurisdictional implications. Our Top 10 Q&As have been updated to reflect latest developments from the ISSB as it redeliberates its proposals, and EFRAG’s release of the first set of 12 draft standards that are now before the European Commission.
SEC: Release Nos. 33-11042 and 34-94478 The Enhancement and Standardization of Climate-Related Disclosures for Investors
Sustainability reporting continues to develop at a fast pace. In March 2022, the ISSB released its first two proposed standards, aiming to create a global baseline for investor-focused sustainability reporting that local jurisdictions (e.g., the US and the EU) can build on. In parallel, the SEC and EFRAG released separate proposals. In November 2022, following redeliberation based on feedback received, EFRAG submitted its first set of draft standards to the European Commission for approval.
— Scott Flynn, KPMG US Audit Vice Chair
What’s the issue?
What's the impact?
Top 10 questions
We answer these questions about the three sets of proposals: