ISSB considers phased approach to sustainability reporting with climate taking centre stage
While we wait for the much-anticipated initial two standards from the International Sustainability Standards Board (ISSB), set to be released in Q2 2023, the board is considering additional transitional relief to support companies who will be implementing Standards S1 and S2.
At an upcoming supplementary meeting, the ISSB will discuss a potential enhancement that allows companies to ease into sustainability-related disclosure by phasing in their approach beginning with climate-related risks and opportunities in the first year of reporting. For those who opt to take advantage of this relief, full reporting on sustainability-related risks and opportunities (beyond just climate) would start in the second year.
This approach echoes the message that the ISSB has been receiving from investors, who have been calling for consistent and comprehensive information on climate-related disclosures. And yet, the board recognises the need for more comprehensive reporting on sustainability-related risks and opportunities in the near term.
Read more and access the paper in advance of the meeting here.