Ceres welcomes the announcement today that the International Sustainability Standards Board (ISSB) has finalized its first two sets of reporting standards, one for general sustainability and the other for climate-related reporting. The standards, which will take effect in January 2024, establish a global baseline for corporate reporting on climate and sustainability risks and opportunities.
“The ISSB standards address the urgent need for a global baseline for measuring and evaluating climate and sustainability risks,” said Ceres CEO and President Mindy Lubber. “Sustainability factors are a vital consideration in investment decision-making. We congratulate the ISSB for their leadership in taking on the ambitious task of streamlining the reporting of those factors and encourage nations to swiftly adopt these standards.”
The finalized standards are designed to complement the International Financial Reporting Standards (IFRS) Accounting Standards, used by 167 countries worldwide. Ceres encourages governments to adopt the ISSB standards, in order to establish a consistent and comprehensive global baseline for disclosure that benefits investors, stakeholders, and companies.
The standards include features that provide essential information for investors and appropriate, selective relief to companies. This includes:
Industry-based guidance based on the SASB Standards, which provide metrics for disclosure of the sustainability issues most relevant to financial performance and enterprise value for 77 industries.
Incorporating the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations
Requiring disclosure, where material, of any transition plans that are in place, climate resilience and Scopes 1-3 emissions
Requiring disclosure aligned with the GHG Protocol, the leading emissions disclosure standard worldwide
Providing relief for Scope 3 disclosure, including a temporary disclosure exemption and a Scope 3 measurement framework for that incorporates the use of estimation
"The market needs standardized climate information to illuminate the risks and opportunities for companies operating today and ensure they remain resilient in the future. The ISSB's standards are an important mark of progress; now, securities regulators around the world need to implement these best-in-class standards to supply investors with decision-useful disclosures,” Lubber added.
Ceres has worked for decades to improve sustainability disclosure for a wide range of stakeholders including investors. Ceres co-founded the Global Reporting Initiative, the leading reporting standard for impact reporting. Members of the Ceres Investor Network and other investors have advocated for improved climate risk disclosure in U.S. financial filings since 2003. Ceres has also collaborated with the Climate Disclosure Standards Board, SASB, the International Integrated Reporting Council, and the TCFD to improve disclosure and is pleased to see their work incorporated in the ISSB’s standards.
About Ceres
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.