ISSB’s disclosure standards are being adopted at different speeds globally
Recent MSCI Research shows that, following the launch of the International Sustainability Standards Board’s (ISSB) disclosure standards in mid-2023, a number of jurisdictions have announced plans to implement ISSB-aligned reporting rules within their local regulatory frameworks over the coming year or so. As 2024 unfolds we may see whether the speed, scale and rigor with which they implement the ISSB standards matches the ambition for it to become a global baseline for sustainability reporting. Some jurisdictions have taken the lead and have proposed detailed ISSB-aligned disclosure requirements. In some cases, these build on existing disclosure regulations based on the recommendations by the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD was officially incorporated into the ISSB in 2023.
In the EU, companies will need to report in line with the European Sustainability Reporting Standards, which are designed to be interoperable with the ISSB. Hong Kong was expected to introduce the world’s first set of ISSB-specific rules in January 2024 but postponed to January 2025. The U.K. is set to launch its own ISSB-aligned disclosure standards for registered companies by the summer of 2024, while Australia intends to finalise its ISSB-aligned reporting framework for large firms by July 2024. Looking further down the road, ISSB-aligned disclosures are expected to become mandatory in Japan and Singapore in 2025. However, the world’s two largest economies, the U.S. and China, have yet to announce any formal plans to introduce ISSB-aligned reporting frameworks.
IAB’s ESG 2024 Supplement showcases the views of ESG market leaders and industry decision makers, and looks at the key ESG trends and activities in the accountancy sector globally.
IAB’s ESG 2024 Supplement leads with ACCA’s practical five-point action plan to account for a better world; Praxity’s Thought Leadership piece spotlights the discourse surrounding the standardisation of ESG regulations, an area that continues to confound the profession across jurisdictions; Experts at Russell Bedford International discuss the risk consequences of climate change and how organisations can move towards sustainability; and the team at SMS Latinoamérica look at regulatory preparedness across LATAM’s economies. Each organisation offers case studies to highlight their initiatives in providing solutions around ESG matters. There are also two reports by GlobalData analysts on sector sentiment around ESG matters and investment in technology to meet regulatory and market demands for ESG reporting.
IAB Supplements to follow in 2024 will cover the following themes:
October: L&D
December: Tax
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