ISSB Says there are Challenges for Small and Mid-Cap Sustainability Disclosure
The IFRS Foundation's International Sustainability Standards Board (ISSB) said it would give "particular attention" to small and mid-cap enterprises when building a global baseline of sustainability disclosure rules.
According to the ISSB, such companies and others in global supply chains face "extra challenges" in complying with sustainability disclosure standards. Its working group is ready to begin discussions with governments on capital market sustainability disclosure standards.
According to the London-based non-profit organisation, the G7, G20, International Organisation of Securities Commissions, Financial Stability Board, and corporations and investors worldwide have praised the work to develop the baseline.
The ISSB's global baseline offers a once-in-a-lifetime chance to eliminate current and future fragmentation of sustainability disclosure standards. The foundation argues that "widespread usage of the baseline will save expenses for data preparers and increase information usability for data users."
According to the report, it will be up to public authorities and market actors to promote the baseline's development and advocate for or urge its wider usage.
The ISSB was established in November 2021 at the COP26 climate conference in response to government and market demands for high-quality, globally consistent sustainability disclosures that allow investors to assess sustainability-related risks and opportunities when making investment decisions and determine enterprise value. Finance ministers and central bank governors from more than 40 countries applauded the ISSB's declaration and intentions to develop disclosure requirements.
Existing investor-focused sustainability disclosure standards, including those of the TCFD, the Climate Disclosure Standards Board, SASB Standards, the International Integrated Reporting Council, and the World Economic Forum, will be incorporated and built upon by the global baseline.
Source: IR Magazine
