With global awareness of addressing environmental sustainability issues, there is an urgent need to create a safer, sustainable planet. The ISSB, supported by G7 and G20, aims to establish a consistent global baseline and facilitate two-way engagement with jurisdictions helping investors, and financial markets and society widely. The focus will serve as a catalyst for the necessary positive changes in business operations to combat the challenges posed by climate change.
The launch of First Two standards are welcomed from ISSB by Accounting sector (ACCA):
- IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information – emphasizes on how well financial statements are integrated with sustainability reporting
- IFRS S2 Climate-related Disclosures – Companies that are already reporting via TCFD are well on their way to achieving ISSB compliance.
Accountancy roles are been developed to drive sustainability. ACCA has been closely associated with the formulating of the standards and has worked with the ISSB improving and refining the original draft standard.
Essentially, since 2013, Sustainability has been an integral part of ACCA qualification. Today it involves environmental assurance and tax, internal control, environmental reporting, sustainability reporting and more. ACCA remains committed to supporting the vital work of the ISSB. Accountancy profession has critical role to play in creating sustainable world as it involves working inside and advising businesses across the world.
The initial corporate reports adhering to the new standards will be for 2024, published in 2025, with variations across jurisdictions. Some jurisdictions will mandate sustainability reporting as early as 2025 for large and listed companies, public interest entities, and potentially SMEs as part of value chain reporting.
These standards will lay foundation of making sustainability reporting more consistent, worthwhile. essentially professionals achieving SOC in sustainability reporting and its integration. They will drive wider changes too as sustainability reporting is likely to drive sustainability-led strategies, and there will be operational changes required to implement them and their reporting. Investors will see this as the start of providing the information they require to allocate capital more efficiently and responsibly. We look forward to continuing to work with the ISSB and other stakeholders in playing our part to build sustainability reporting capacity and tackle the climate emergency.
