International Applicability of the SASB Standards

Date recorded:

Ratification of the Methodology Exposure Draft (Agenda Paper 8A)

This paper’s objectives were:

  • To seek ratification by the ISSB of the Exposure Draft Methodology for Enhancing the International Applicability of the SASB Standards and SASB Standards Taxonomy Updates (Methodology ED)
  • To seek the ISSB’s agreement for a 90-day comment period for the Methodology ED
  • To ask the ISSB to confirm it is satisfied that it has complied with the applicable due process requirements to publish the Methodology ED

The SASB Standards Board Advisor Group has developed the proposed Methodology ED presented in Agenda Paper 8B and recommends that the ISSB approve its publication for consultation. Therefore, in accordance with the due process agreed by the IFRS Trustees’ Due Process Oversight Committee, the Methodology ED is presented to the full ISSB for ratification at this meeting. Ratifying the Methodology ED requires the same level of support from ISSB members as is required for any other ISSB ED (i.e. nine members in favour). An ISSB member may dissent from ratifying the ED. If that is the case, the dissent and the member’s reasons for doing so will be stated in the approvals section of the Methodology ED.

ISSB decision

The ISSB decided to ratify the Methodology ED and to allow 90 days for comment. All 14 ISSB members agreed with these decisions.

Furthermore, all 14 ISSB members confirmed they are satisfied the ISSB has complied with the applicable due process requirements.

The ISSB expects to publish the ED in May 2023. Feedback from stakeholders on the ED will inform how the ISSB proceeds with the proposed amendments to the SASB Standards and corresponding updates to the SASB Standards Taxonomy.

Proposed Exposure Draft (Agenda Paper 8B)

The Methodology ED will include the proposed methodology by the ISSB for amending SASB Standards and the proposed approach for updating the digital SASB Standards Taxonomy to reflect amendments made to the SASB Standards.

The proposed methodology builds on the approaches used to improve the international applicability of the industry-based climate-related disclosures developed in Appendix B of [draft] IFRS S2 and described in the associated Basis for Conclusions (BC). That methodology has been refined based on feedback received on [draft] IFRS S2. However, the methodology and associated ISSB deliberations described in this ED are separate from the ISSB discussions regarding climate-specific disclosures in [draft] IFRS S2. As agreed when redeliberating [draft] IFRS S2, the ISSB will continue to consider the international applicability of industry-specific disclosures in IFRS S2 as part of its future work.

The SASB Standards Taxonomy allows preparers to digitally tag information disclosed when applying the SASB Standards. This digital tagging makes the information disclosed machine-readable so that users of general purpose financial reports can collect, use and compare entity-reported information more easily. Since the SASB Standards Taxonomy reflects the SASB Standards’ content, any amendments to that content require consideration of corresponding updates to the SASB Standards Taxonomy. The proposed methodology in this ED will allow the SASB Standards Taxonomy to be updated to align with all amendments to the SASB Standards.

This paper was not discussed.

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