International Sustainability Standards Board and IFRS Foundation Release Inaugural Jurisdictional Guide for Adoption of Sustainability Reporting Standards

The International Sustainability Standards Board (ISSB) and its parent organization, the International Financial Reporting Standards Foundation, have taken a significant step towards global adoption of sustainability reporting and climate-related disclosure standards. The ISSB recently released its inaugural jurisdictional guide, aimed at assisting countries around the world in implementing the ISSB standards S1 and S2.

According to the ISSB and the IFRS Foundation, over 20 jurisdictions have expressed interest in incorporating these standards into their legal or regulatory frameworks. These jurisdictions collectively represent a substantial portion of global GDP and market capitalization, highlighting the widespread recognition of the value of sustainability reporting standards.

One notable partnership formed at an annual meeting in Nairobi, Kenya, is between the African Development Bank and the IFRS Foundation. This collaboration aims to enhance sustainability-related disclosure practices in Africa through capacity building and technical assistance.

Furthermore, the International Federation of Accountants (IFAC) has been working closely with the IFRS Foundation on the Regulatory Implementation Program, which focuses on advancing capacity building to support the adoption of ISSB standards. This collaboration underscores the global momentum towards harmonized sustainability reporting standards.

In China, the Ministry of Finance has issued an exposure draft of Chinese Sustainability Disclosure Standards based on ISSB standards, demonstrating the alignment of global standards with local contexts.

The collaboration between the ISSB and the Global Reporting Initiative (GRI) further strengthens the push for transparent and consistent sustainability reporting. By coordinating their work, these organizations aim to streamline reporting processes and enhance the understanding of organizations’ impacts, risks, and opportunities.

Overall, the release of the ISSB’s jurisdictional guide and the collaborations with various organizations signify a significant step towards establishing a global framework for sustainability reporting. With increasing support from jurisdictions, regulators, and standard-setters, the momentum towards consistent and high-quality sustainability disclosures is gaining traction on a global scale.