Overview

The ISSB has committed to improve the international applicability of the SASB Standards as part of its initial work plan. The SASB Standards will be essential to support preparers implementing IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1).

As discussed at the October 2022 ISSB meeting, pursuing timely enhancements to the international applicability of the SASB Standards is an important first step to ensure preparers can use these standards internationally to apply IFRS S1—specifically to develop disclosures regarding sustainability-related risks and opportunities in the absence of a specific ISSB Standard.

The International Applicability of the SASB Standards project is a targeted project to help preparers use the SASB Standards in multiple jurisdictions. This project is separate from the work the ISSB has discussed regarding climate-specific disclosures in IFRS S2, Climate-related Disclosures (IFRS S2) in which the ISSB has indicated an intention to require the use of these disclosures at a future date. This would be subject to consultation, and the ISSB may consider whether any amendments are necessary, including to ensure the international relevance of these disclosures.

More specifically, the objectives for the International Applicability of SASB Standards Project are as follows: (a) identifying potential regional biases and jurisdictionally specific references throughout the SASB Standards that might be difficult for preparers operating in certain jurisdictions or across multiple jurisdictions to apply; (b) ensuring the SASB Standards are GAAP-agnostic without substantially altering the Standards' structure or original intent; (c) removing jurisdictionally specific references without significantly altering the costs and benefits of application; (d) replacing jurisdictionally specific references with internationally applicable references when available; and (e) generalizing applicable jurisdictional legal and regulatory references when necessary.

On May 11, 2023, the ISSB published an Exposure Draft, “Methodology for Enhancing the International Applicability of the SASB Standards and SASB Standards Taxonomy Updates”'. The deadline for submitting comments is August 9, 2023.

The Exposure Draft notes that (i) a small subset of the metrics included in the SASB Standards—around 20%—incorporate references to specific jurisdictional laws and regulations. Revising these references will help improve international applicability and remove regional bias; (ii) the SASB Standards serve as an important source of guidance in the ISSB’s general requirements standard (IFRS S1) by helping companies to identify sustainability-related risks and opportunities and provide appropriate disclosures beyond climate (which is addressed by IFRS S2); and (iii) the ISSB’s objective is to revise the metrics within the SASB Standards, based on the outcomes of the consultation, prior to IFRS S1 coming into effect in January 2024.

On June 12, 2023, FRAS Canada issued its Exposure Draft which corresponds to the ISSB’s Exposure Draft on this topic.

On December 13, 2023, the ISSB ratified the amendments to the SASB Standards.

For further details refer to the project summary on the ISSB’s website.

Other developments

July 2023

The ISSB staff up­dated the Work Plan to note that the ISSB ex­pects to discuss the feedback on the exposure draft in September 2023.

June 2023

On June 12, 2023, FRAS Canada issued its Exposure Draft which corresponds to the ISSB’s Exposure Draft on this topic.

May 2023

On May 11, 2023, the ISSB published an Exposure Draft, “Methodology for Enhancing the International Applicability of the SASB Standards and SASB Standards Taxonomy Updates”'. The deadline for submitting comments is August 9, 2023.

March 2023

The ISSB staff updated the Work Plan to note that the ISSB expects to issue an Exposure Draft in May 2023.