The New Era of the ISSB: Transitioning from the SASB Standards to IFRS Sustainability Disclosure Standards
What Do You Need to Know?
Capital markets require consistent and comparable disclosure to provide long-term value to shareholders and secure the future of our planet. To meet these requirements, the IFRS Foundation has proposed creating a global baseline of high-quality sustainability disclosure standards through the new International Sustainability Standards Board (ISSB). The ISSB will consolidate and build on existing frameworks, standards, and guidance rather than create something new.
As part of this consolidation effort, the SASB Standards will serve as the starting point for the ISSB’s industry-specific requirements. This means that the SASB Standards will ultimately transition into IFRS Sustainability Disclosure Standards using ISSB due process. Ownership of the SASB Standards will transfer to the IFRS Foundation in June, along with existing projects such as work to internationalize metrics following market feedback.
What does the Transition Mean for Report Preparers and Users?
In the short term, there is no change for report preparers and users. They should continue to use the SASB Standards to ensure that they meet the present and future information needs of investors. Adopting the SASB Standards, the Integrated Reporting Framework, and/or the TCFD recommendations now will better prepare companies for the future adoption of the IFRS Sustainability Disclosure Standards.
In the medium term, it is important to provide input into the development of the IFRS Sustainability Disclosure Standards. The IFRS Foundation has already taken a step in the right direction by creating two prototypes that leverage content from the SASB Standards. The goal is to streamline the reporting landscape, 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.
In the long term, a streamlined landscape for reporting to investors is envisioned, 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 on the financial markets.
The Online Certificate on SASB & TCFD Reporting by CSE
As sustainability disclosure standards evolve and transition into new frameworks, it is important for professionals to stay informed and knowledgeable about these changes. The Online Certificate on SASB & TCFD Reporting by CSE is designed to help participants acquire or enhance their competency to understand the requirements of the SASB Standards and the TCFD recommendations. This course is focused on the acquisition of knowledge of applying the SASB Standards, as well as reporting on the organization’s climate-related risks and opportunities based on the TCFD recommendations.
By taking this course, professionals can better prepare themselves for the future adoption of the IFRS Sustainability Disclosure Standards. The course is an excellent opportunity to stay informed, stay competitive, and stay ahead of the curve in the ever-changing landscape of sustainability reporting.
For more info visit our website or contact us at [email protected].