Project update (Agenda Paper 8)

The objective of this paper was to inform ISSB members regarding the process to maintain, enhance and improve the SASB Standards henceforth.

This paper also provided ISSB members with a status update of the ‘International Applicability of the SASB Standards’ project and detailed the concepts and processes that guide that effort.

This was an educational session for the ISSB. The ISSB was not asked to make any decisions. Consistent with the process approved by the Due Process Oversight Committee of the Trustees, the SASB Standards Board Advisor Group will make recommendations to the ISSB at a future meeting regarding this project. At that point, the ISSB will be asked to make decisions.

Summary

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.

During the ISSB Meeting, the ‘International Applicability of the SASB Standards’ project, which is a targeted project to help preparers use the SASB Standards in multiple jurisdictions, was presented. This project is separate from the work the ISSB has discussed regarding climate-specific disclosures in 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:

• 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
• Ensuring the SASB Standards are GAAP-agnostic without substantially altering the Standards' structure or original intent
• Removing jurisdictionally specific references without significantly altering the costs and benefits of application
• Replacing jurisdictionally specific references with internationally applicable references when available
• Generalising applicable jurisdictional legal and regulatory references when necessary

Regarding the climate-related SASB Standards content, during the balloting process for IFRS S2, the ISSB will vote on consequential amendments to the SASB Standards to align them with the industry-based guidance accompanying IFRS S2.

The recommendations of the SASB Standards Board Advisor Group including the proposed ‘Methodology Exposure Draft’ will be presented to the ISSB for ratification at a future meeting. The objective is that the ‘International Applicability of the SASB Standards’ project should publish updated SASB Standards by the end of 2023. This deadline is important to enable entities internationally to reference the SASB Standards when implementing IFRS S1 from the effective date in 2024.