65 organizations today endorse a joint statement calling for stronger alignment of regulatory and standard-setting efforts around sustainability disclosure. They encourage major actors, including the International Sustainability Standards Board (ISSB), the US Securities Exchange Commission (SEC) and the European Financial Reporting Advisory Group (EFRAG) to continue to work closely together.
- Capital
market participants are supportive of establishing a global baseline of
sustainability disclosure requirements, on top of which local
jurisdictions can add their own interoperable reporting requirements.
- Find the full text of the endorsed statement here.
Sixty-five
companies, investors and professional accounting firms from across the
world add their voices to the call for major standard-setting efforts to
more closely align with and support a global baseline for reporting
sustainability-related information.
The endorsed statement was
developed jointly by the World Business Council for Sustainable
Development (WBCSD), the Principles for Responsible Investment (PRI),
and the International Federation of Accountants (IFAC). In addition to
formal consultation responses, this public statement makes clear the
momentum and encouragement behind stronger alignment between
sustainability standard-setting efforts.
Significant efforts by
the International Sustainability Standards Board (ISSB), the US
Securities and Exchange Commission (SEC), and the European Commission
together with the European Financial Reporting Advisory Group (EFRAG),
all aim to address the need to enhance and evolve corporate reporting to
include and consider sustainability information. However, current draft
standards and initiatives are not technically compatible in terms of
concepts, terminologies, and metrics.
As these proposed
sustainability-related disclosure requirements are refined and
finalized, leading financial market participants are asking financial
market regulators to avoid regulatory and standard setting fragmentation
by aligning on key concepts, terminologies, and metrics on which
disclosure requirements are built.
A comprehensive global baseline
of sustainability disclosures is required for reporting entities to
avoid undue burden and for investors to make investment decisions that
truly contribute to sustainable outcomes.
A globally consistent,
comparable, reliable, and assurable corporate reporting system is
indispensable in providing all stakeholders with a clear and accurate
picture of an organization’s ability to create sustainable value over
time.
IFAC
© IFAC - International Federation of Accountants
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