A welcome pace as IFRS Trustees take further steps towards a global approach to sustainability standards.
Continuing at a refreshing pace, the IFRS Foundation Trustees today released their views
on the strategic direction of a potential new sustainability standards
board, setting out the next planned steps in their work as they continue
deliberations to a possible announcement in advance of Novembers COP26
in Glasgow.
“The trajectory outlined in today’s IFRS Statement confirming next
steps in the Trustees strategic direction follows a familiar path to the
evolution of CDSB since it's inception in 2007, which started with
financially material climate risk reporting and then moved to cover
environmental and social issues more recently ” notes Ravi Abeywardana,
CDSB Technical Director, “ and as such with our close alignment to both
IFRS and TCFD are well placed to support the Trustees in developing a
globally consistent and comparable baseline for reporting sustainability
information”.
Given the urgent demand and need the continued momentum of the IFRS
Trustees is welcome, along with the strategic direction of a new board
that will build in the well-established work of the leading standards
setters focussed on enterprise value, including the recent climate prototype released by the Group of 5 standards setters in December 2020.
“Often we see companies ‘down tools’ so to speak when something new
is being proposed, waiting to see what it will recommend. This
announcement is a clear signal to the report preparers that any future
global standard will address material climate related financial risks
and opportunities and build off existing frameworks and standards such
as CDSB and TCFD. We are already at risk from missing key deadlines for
keeping climate emissions below 1.5 degrees and meeting the ambitious
goals of the SDG’s, and don’t have the luxury of time to stop and wait
for the IFRS Foundation and the Sustainability Standards Board (SSB) – I
suggest all listed companies make sure they are preparing relevant
climate and environmental information in accordance with the existing
financially material standards in preparation for a global approach
under the SSB” states CDSB’s Managing Director, Mardi McBrien.
CDSB looks forward to responding to the upcoming consultation on the
proposed changes to the Foundations constitution and remains ready to
support the IFRS Foundation and Trustees with this important work and
will continue to work with the Group of 5 in harmonization efforts.
CDSB
© CDSB
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