ASCG on the proposed Amendments to the IFRS Foundation Constitution

The ASCG’s Administrative Board sent its comment letter to the Trustees of the IFRS Foundation.

The Trustees had published a draft amendment to its Constitution on 30 April 2021  – ED/2021/5 Proposed Targeted Amendments to the IFRS Foundation Constitution to Accommodate an International Sustainability Standards Board to Set IFRS Sustainability Standards. The draft supports the intended establishment of an International Sustainability Standards Board (ISSB), which is tasked to develop sustainability standards.

The ASCG supports the IFRS Foundation’s initiative and broadly agrees with the proposed amendments to the Constitution, given the increasing importance of sustainability reporting and the IFRS Foundation’s proven track record of developing high-quality reporting standards within an independent due process.

The ASCG supports a global baseline approach in the development of sustainability standards, to ensure the connectivity of future IFRS sustainability standards with other international and national sustainability standards. This is particularly important with regard to the current development of EU sustainability standards under EFRAG.