A look at the future of the SASB Standards and the Framework under the ISSB
In June, the Value Reporting Foundation (VRF) will be consolidated into the International Financial Reporting Standards (IFRS) Foundation, joining the new International Sustainability Standards Board (ISSB). So what will the future look will look like for the SASB Standards and the Integrated Reporting Framework – both currently part of the VRF – under the ISSB. To answer that question the VRF has published a set of information sheets and brief videos.
As the information sheet explains, the SASB Standards will provide the starting point for the ISSB’s industry-specific reporting standards, alongside general (e.g. governance) and thematic (e.g. climate) requirements. Ownership of the SASB Standards will be transferred to the IFRS Foundation in June, and they will ultimately transition into IFRS Sustainability Disclosure Standards using ISSB due process. Meanwhile, the principles and concepts of the Integrated Reporting Framework will provide a conceptual basis for the essential connectivity between the IFRS Accounting Standards and the new IFRS Sustainability Disclosure Standards.
In the short term, there is no change for report preparers and users, and efforts put into disclosure now will lay a solid foundation for implementing future standards. In the medium term, the VRF emphasises that “it is essential to have strong preparer and investor input into the development of the IFRS Sustainability Disclosure Standards,” and urges stakeholders to be ready to share their input.
“In the long term, we aim for a streamlined landscape for reporting to investors, consisting of IFRS Sustainability Disclosure Standards, financial accounting standards (either IFRS or US GAAP), and a connecting framework for describing a company’s governance, strategy, and risk management of financially material sustainability issues. Together, these resources will enable a company to provide a comprehensive view of performance and prospects to the financial markets.”