ISSB launches first consultation on two Exposure drafts

On 31 March 2022 the International Sustainability Standards Board (ISSB) delivered two proposals and additional documents in order to create a comprehensive global baseline of sustainability disclosures.

The Exposure Drafts (ED) on Sustainability reporting for public consultation are: ED IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and ED IFRS S2 Climate-related Disclosures.

The proposals build upon the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and incorporate industry-based disclosure requirements derived from the Sustainability Accounting Standards Board (SASB).

The Exposure Drafts are derived on the prototype standards that had been prepared by the Technical Readiness Working Group (TRWG) and published by the IFRS Foundation in November 2021 in the course of the UN Climate Change Conference (COP26). These prototypes have been further developed in the meantime. The Exposure Drafts were, however, launched for consultation without further consideration by the ISSB. Last week, the IFRS Foundation’s Due Process Oversight Committee had given its approval to the ISSB chairs, Emmanuel Faber, and Sue Lloyd, to this procedure.

The ISSB is seeking feedback on the proposals over a 120-day consultation period closing on 29 July 2022.