Advancing Sustainability Leadership: The Critical Role of ISSB Reporting Standards for Your Organization
Achieve Competitive Advantage and Amplify Impact through ESG Reporting
The global landscape of sustainability reporting is transforming, and the International Sustainability Standards Board (ISSB) is leading the way. Their newly released standards are set to become the gold standard for how companies disclose their environmental, social, and governance (ESG) performance. Explore these standards and learn how your organization can leverage them for greater impact.
Since the global rise in sustainability reporting in the 2000’s, a myriad of frameworks, principles, and standards have emerged, offering organizations multiple options to voluntarily disclose sustainability-related information. However, this abundance of choices has led to a fragmented and inconsistent reporting landscape, hindering meaningful comparisons across different markets and jurisdictions.
This is expected to change. In June 2023, the International Sustainability Standard Board (ISSB) released its inaugural global Sustainability Disclosure Standards, scheduled for incorporation starting in 2024. The ISSB standards aim to provide a comprehensive, globally recognized framework for organizations to disclose their sustainability-related financial information, ensuring standardization, simplification, and comparability across industries and borders to enable better investment decisions.
What do the ISSB Standards Cover?
Currently, two standards have been published:
- IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information: Requires companies to disclose material information about sustainability-related risks and opportunities, including governance, strategy, risk management, metrics, and targets.
- IFRS S2: Climate-related Disclosures: Delves into the specific requirements for identifying, measuring, and disclosing climate-related financial information.
What are the ISSB Standards Based on?
The ISSB Standards build upon and consolidate existing ESG reporting initiatives, including:
- Task Force on Climate-related Financial Disclosures (TCFD)
- Climate Disclosure Standards Board (CDSB)
- Sustainability Accounting Standards Board (SASB).
Who is Behind the ISSB Standards?
The International Sustainability Standards Board (ISSB) was established in 2021 by the International Financial Reporting Standards (IFRS) Foundation, the same organization that sets globally accepted accounting standards.
When do the ISSB Standards Apply?
The standards will apply to annual reporting periods beginning on or after January 1, 2024, meaning disclosures will start to appear in 2025.
Are the Standards Mandatory?
Currently, adoption of the ISSB guidelines is voluntary, with each jurisdiction deciding whether to mandate them. However, it is expected it will become a requirement for accessing certain markets or financing in the future, complementing financial reports.
This anticipation of future mandates is driving widespread global adoption. A notable example is Canada, where significant progress has been made. The Canadian Sustainability Standards Board (CSSB) introduced the Canadian Sustainability Disclosure Standards (CSDS) in March 2024, aligning with ISSB guidelines (Read How to Prepare for Canada’s New Sustainability Reporting Standards blog post).
Why Should your Organization Care about ISSB and ESG reporting?
- Get Ahead of the Curve: Stay ahead of regulatory developments and avoid potential compliance challenges down the road.
- Attract Investors: Provide the transparent and reliable information that investors and other stakeholders are increasingly demanding.
- Improve Decision-Making: Gain a deeper understanding of your company’s sustainability risks and opportunities.
- Enhance Your Reputation: Showcase your company’s leadership in sustainability and responsible business practices.
How can Blackstone Energy help?
If your company hasn’t already begun planning for ISSB reporting, it’s time to get started, and Blackstone can help you on this journey.
Our team can assist you in navigating the complexities of ISSB and ESG reporting and meeting your carbon and climate reporting disclosures, and compliance obligations on time. Blackstone Energy is well-equipped to help manage, conserve, and implement decarbonization tools, further enhancing and integrating cost-savings and more efficient energy processes within your operations.
To learn how our team of experts can assist you, please reach out: policyandregulatory@blackstoneenergy.com.
