(3 July 2023 – Global) Regulators efforts to stamp out greenwashing will be aided by the International Sustainability Standards Board (ISSB) issuing inaugural standards IFRS S1 and S2 to create a common language for disclosing the effect of climate-related risks and opportunities on a company’s prospects.
The announcement marks a new era of sustainability-related disclosures in global capital markets. IFRS S1 provides a set of disclosure requirements designed to enable companies to communicate sustainability-related risks and opportunities they face over the short, medium and long term. IFRS S2 sets out specific climate-related disclosures and is designed to be used with IFRS S1.
“Today represents the outcome of more than 18 months of intense work to deliver an inaugural set of sustainability disclosure standards for the global capital markets. The ISSB Standards have been designed to help companies tell their sustainability story in a robust, comparable and verifiable manner” commented ISSB Chair, Emmanuel Faber.
We have consulted closely with the market to ensure the Standards are proportionate and will result in disclosures that are relevant for investment decision-making. We know that better information leads to better economic decisions. Today’s publication is just the starting point as we consult on our future priorities, beyond climate” Faber added.