The Group of Seven (G7) Finance Ministers and Central Bank Governors have issued a communiqué calling for the introduction of mandatory climate-related disclosures and endorsing international initiatives, among other concrete actions to address today’s historic challenges.
The International Financial Reporting Standards (IFRS) Foundation has recently taken two further significant and concrete steps in the development of the proposed International Sustainability Standards Board (ISSB).
A recent post from the International Monetary Fund (IMF), on ‘How strengthening standards for data and disclosure can make for a greener future,’ lends its support to harmonised and consistent climate disclosures.
The International Accounting Standards Board (IASB) has published a proposed comprehensive framework for the preparation of management commentaries. The new framework is intended to reflect changes and innovations in the corporate reporting landscape, and better meet the information needs of today’s investors.
Commissioner Allison Herren Lee of the US Securities and Exchange Commission (SEC) recently spoke on ‘Living in a Material World: Myths and Misconceptions about “Materiality.”’ She addressed, among other topics, the important role of the investor in determining what is ‘material’ to disclosure, particularly around environmental, social and governance (ESG) topics.
The China Securities Regulatory Commission (CSRC) is consulting on revised disclosure rules for publicly listed companies, including new environmental, social and governance (ESG) requirements.
The Sustainability Accounting Standards Board (SASB) has some interesting food for thought available on environmental, social and governance (ESG) disclosures, as it discusses the five practices most valued by investors.
On 20 May 2021 US President Joe Biden signed a sweeping Executive Order on Climate-Related Financial Risk. It mandates greater disclosures to provide the information needed to understand climate risks and enable action to mitigate them.
“The bottom line about the double bottom line is that investors don’t have to make performance concessions to achieve sustainable outcomes. ESG data is an indicator of future performance potential and should be incorporated into the investment mosaic of all the different types of data that are used to predict performance.”
Janine Guillot, CEO of the Sustainability Accounting Standards Board (SASB), has published a piece discussing the Board’s response to the US Securities and Exchange Commission (SEC) consultation on climate change disclosure, and welcoming SEC’s commitment to addressing the needs of 21st century investors in this arena.