The International Financial Reporting Standards Foundation, the non-profit foundation that oversees the International Accounting Standards Board, has announced the creation of the "International Sustainability Standards Board," which is intended to "craft climate-disclosure rules for companies as investors push for more standardized information."
Numerous countries--although not the United States--typically incorporate the recommendations and standards devised by these international bodies into their own regulations. And, even those authorities that do not incorporate these recommendations typically rely on these standards as a reference point when drafting their own regulations.
Although the International Sustainability Standards Board has not yet published any climate-disclosure rules--the earliest these are expected is in the first half of 2022--the formation of this new body demonstrates the increasing global momentum towards requiring climate change financial disclosures and the accompanying desire for uniform reporting standards to ease the comprehensibility and aid comparative analysis of the information disclosed.
The foundation that oversees the International Accounting Standards Board said it has created a new body to craft climate-disclosure rules for companies as investors push for more standardized information. The new International Sustainability Standards Board is expected to issue its first set of standards in the second half of 2022, which will serve as the starting point for requirements on climate-related disclosure that jurisdictions could then choose to implement, the IFRS Foundation said Wednesday at the COP26 summit in Glasgow.