The TIG informs the ISSB about potential implementation questions that could arise when companies implement the new standards IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.

The purpose of the TIG is to solicit, analyse and discuss stakeholder questions arising from implementation of the new standards, to inform the ISSB about those implementation questions, which will help the ISSB determine what, if any, action will be needed to address those questions, and to provide a public forum for stakeholders to learn about the new Standards from others involved with implementation.

Review the list of members on the IFRS Foundation website

Mr. Servais began his speech by noting that in June 2023, the ISSB published its inaugural set of sustainability-related disclosure standards and that in July 2023 IOSCO announced its decision to endorse the ISSB standards as fit for purpose for financial markets. Mr. Servais stressed:

“IOSCO’s endorsement decision calls on 130 member jurisdictions, which regulate more than 95% of the world's financial markets, to consider ways in which they might adopt, apply or otherwise be informed by the ISSB Standards.”

Finally, Mr. Servais noted that IOSCO will roll out an extensive capacity-building programme and will also put its weight behind the development, by 2024, of high-quality standards for assurance of sustainability-related information to enhance their trustworthiness.

Review the speech on the IOSCO website.

In particular, the G20 concluded that flexibility will contribute to a global solution in sustainability reporting. The declaration notes:

“We welcome the finalization of the sustainability and climate-related disclosure standards published by the International Sustainability Standards Board (ISSB) in June 2023, which provide the mechanisms that address proportionality and promote interoperability. It is important that flexibility, to take into account country-specific circumstances, is preserved in the implementation of those standards. When put into practice as above, those standards will help support globally comparable and reliable disclosures.”

Review the declaration on the European council website.

The letter also notes the risks that climate change could pose to financial stability. In that context, the letter notes:

“An important milestone in the FSB’s Climate Roadmap has been the publication of the International Sustainability Standards Board (ISSB)’s disclosure standards, which have been endorsed by the International Organization of Securities Commissions (IOSCO). The ISSB standards serve as a global framework for sustainability disclosures and, when implemented, will strengthen the comparability, consistency, and decision-usefulness of climate-related financial disclosures around the world. These standards can be seen as a culmination of the work of the FSB’s Task Force on Climate-related Financial Disclosures (TCFD).”

The FSB states that it will work with the ISSB and other relevant bodies to promote the timely and wide use of the standards.

Access the letter on the FSB website.

Generally, the IFAC response to the request for information notes that IFAC supports the ISSB’s focus on high-quality implementation of IFRS S1 and IFRS S2 so that jurisdictions will more readily adopt ISSB requirements. IFAC also urges the ISSB and the IFRS Foundation to secure the resources necessary (funding, staff, volunteer expertise, etc.) to continue to move with pace in new research and standard-setting activities related to the sustainability topic areas identified in the consultation.

Access the comment letter on the IFRS Foundation website.

She discussed the following five aspects:

• The need for global sustainability disclosures: The International Sustainability Standards Board (ISSB) Standards are being developed to enhance investor-company dialogue through by consolidating and inheriting the resources of other investor-focused initiatives in order to reduce fragmentation.
• Overview of IFRS S1 and IFRS S2: Ms. Lloyd gave an overview of the first two ISSB standards, IFRS S1, the general requirements standard, that provides a set of overarching disclosure requirements designed to enable companies to communicate to investors about the sustainability-related risks and opportunities they face over the short, medium and long term, and IFRS S2 that sets out specific climate-related disclosures and is designed to be used with IFRS S1.
• Support for the ISSB standards: Ms. Lloyd noted the strong support from the investor community internationally for the consistency and comparability of information the ISSB standards will provide for, the announcement from the Financial Stability Board that as a result of the ISSB standards the work of the Task Force on Climate-related Financial Disclosures (TCFD) is complete, and endorsement of the standards by the International Organization of Securities Commissions (IOSCO).
• Cooperation with the European Union: The ISSB welcomes the commitment from the European Commission and European Financial Reporting Advisory Group (EFRAG) to support the need for international consistency. The ISSB's work with European Commission and EFRAG is now focused on how to jointly illustrate the interoperability between the standards.
• Next steps for the ISSB: The ISSB will analyze closely the views of the key stakeholders on the next two-year agenda for the ISSB. Stakeholders have been asked to comment on the strategic direction and balance of the ISSB’s activities; the criteria for assessing which sustainability-related matters to prioritize; and the scope and structure of potential new research and standard-setting projects.

Access the speech on the IFRS website.

• Amplified Engagement through Stakeholder Survey: Recognizing the diverse perspectives and levels of expertise within the stakeholder community, an alternative avenue for feedback has been developed. In addition to the comprehensive Explanatory Memorandum and Response Template, the IAASB has created a stakeholder survey. This user-friendly tool allows the IAASB to obtain the views of stakeholders who may not ordinarily respond to IAASB consultations, including preparers of sustainability information, those with the oversight of its preparation, investors and other users of the sustainability information, sustainability reporting standard setters and members of the academic community. Survey responses will be aggregated and analyzed in conjunction with other feedback received.
• Webinars for Enhanced Understanding: Learn more about ISSA 5000 at dedicated IAASB webinars for practitioners and regulators.
• Empowering Global Exchange at Notable Events: Events leading to opportunities for learning, sharing, and networking.

Re­view the webinar schedule on IAASB’s website.

IFAC calls on G20 leaders to:

• Make Sustainability A Reality, Not Just a Goal
• Support Public Financial Management and Fight Corruption
• Create an Environment for SME Growth and Innovation
• No Inclusive Growth without Education

Review the call to action on the IFAC website.

Highlights of the podcast include discussions on:

• Progress since the launch of IFRS S1 and IFRS S2;
• Technical updates;
• Upcoming IAASB consultation;
• Information on recent webinars.

Access the podcast on the IFRS website.

IOSCO has engaged extensively with the ISSB over the last two years during the development of IFRS S1 and IFRS S2, culminating in a comprehensive and independent review of the final standards. After a detailed analysis, IOSCO has determined that the ISSB standards are appropriate to serve as a global framework for capital markets to develop the use of sustainability-related financial information in both capital raising and trading and for the purpose of helping globally integrated financial markets accurately assess relevant sustainability risks and opportunities.

The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) applaud the efforts of the International Sustainability Standards Board (ISSB) and today’s International Organization of Securities Commissions (IOSCO) endorsement decision of the ISSB’s recently issued IFRS Sustainability Disclosure Standards S1 and S2. IOSCO determined that these standards are “appropriate to serve as a global framework for capital markets to develop the use of sustainability-related financial information in both capital raising and trading and for the purpose of helping globally integrated financial markets accurately assess relevant sustainability risks and opportunities.”

Review the press release and high level roadmap on the IOSCO and IFRS website respectively.

Refer to the joint statement from the IAASB and IESBA Chairs on IOSCO’s endorsement of the IFRS Sustainability Disclosure Standards.